Mike & Cindy Jones~Jacksonville, Fl Real Estate~(904) 874-0422

If you have been waiting for the perfect time to own your own home in Jacksonville, Orange Park, Middleburg or anywhere in Northeast Florida.....Read This!

Mortgage rates dropped to their 11^th straight weekly decline, reaching new record lows, according to Freddie Mac.

Interest rates on 30-year, fixed rate mortgages averaged 4.96 percent this week, down from a previous week's 5.01 percent.

The low rates have caused a spike in home refinancing loans and a welcome relief to cash-strapped home owners facing a slowing economy and rising unemployment rates.

"The fact that interest rates have dropped to a record low is an important development since more affordable home financing could help bring buyers back to the market and prevent some of these foreclosures," says Lawrence White, professor of economics at New York University's Stern School of Business.

Other rates were mixed for the week:

• 15 year fixed rates: averaged 4.65 percent, up from 4.62 percent.
• 1-year adjustable rate mortgages: fell slightly averaging 4.89 percent from 4.95 percent last week.
• 5/1 ARMs: averaged 5.25 percent compared with 5.49 percent last week.

Mortgage rates have continued to drop ever since the Federal Reserve announced a plan in December to buy up $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae-the government-sponsored enterprises.

Freddie Mac started recording mortgages in 1971.

Source: Reuters, Julie Haviv (1/15/09)

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In my day to day travels and in talking with people about Jacksonville and Orange Park Real Estate I am often asked many questions about the real estate market. There are many topics on peoples minds these days and it seems the news about interest rates being so low has folks asking about buyer incentives and the First Time Homebuyer Tax Credit as one of many available.

First-Time Home Buyer
Tax Credit Fact Sheet

2008 Housing Stimulus Legislation

Who is Eligible?

• The $7,500 tax credit is available for first-time homebuyers only.
• The law defines a first-time homebuyer as a buyer who has not owned a home during the past three years.
• All U.S. citizens who file taxes are eligible to participate in the program.

Types of Homes thatQualify for theTax Credit

• All homes within the United States, whether single-family, town homes, or condominiums will qualify.

However, there are several conditions:

☺ The home must be used as a principal residence, and

☺ The buyer has not owned a home in the prior three years.

• The tax credit includes newly-constructed homes.

Income Limits

• Homebuyers who file as single or head-of-household taxpayers can claim the full $7,500 credit if their adjusted gross income (AGI) is less than $75,000. (The price of the purchased property must be $75,000 or more to receive the full credit; otherwise the tax credit will be 10% of the sales price.)
• For married couples filing a joint return, the income limit dou­bles to $150,000.
• Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time homebuyer tax credit.
• Married couples filing jointly who earn between $150,000 and $170,000 are eligible to receive a partial first-time homebuyer tax credit.
• The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples filing jointly with an AGI that exceeds $170,000.

Effective Dates for theTax Credit

First-time homebuyers could receive a $7,500 tax credit for the purchase of any home on or after April 9, 2008 and before July 1, 2009. To qualify, you must close on the sale of the home during this period.

Tax Creditis Refundable

• A refundable credit means that if you pay less than $7,500 in federal income taxes, then the government will send you a check for the difference.

☺ For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $2,500 payment from the government.

☺ If you are due to receive a $1,000 tax refund from the government, your refund would increase to $8,500 ($1,000 plus $7,500 from the homebuyer tax credit).

• If you purchased the home in 2008, the tax credit is taken on your 2008 tax return. If you buy in 2009, you have the option of taking the credit on your 2008 or 2009 returns.

Payback Provisions

• The tax credit is an interest-free loan that must be repaid over 15 years.
• The minimum repayment amount must be 15 equal annual installments. For example, if the credit amount is $7,500, then the homebuyer must repay a minimum of $500 each year for 15 years.
• A homebuyer must begin repaying the credit two tax years after claiming the credit. For example, if the credit is claimed on the 2008 tax return, repayment of $500 (or less, if the credit amount is less than $7,500) per year begins with the 2010 return.
• If the homeowner sells the home for a profit and there is a remaining credit, then the homeowner is required to repay the remaining credit during the tax year of the home sale. The amount of the repayment will depend upon the amount of profit from the home sale.

☺ If the profit on the sale is more than the remaining credit, then the homeowner must repay the entire remaining credit.

☺ If the profit on the sale is less than the remaining credit, then the homeowner must repay an amount equal to the profit on the home sale. The remaining credit payback will be forgiven.

☺ If the homeowner sells the home but did not make any profit on the home sale, then the remain­ing credit payback would be forgiven.

Further information regarding the tax credit may be found at http://federalhousingtaxcredit.com or www.irs.gov. This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.

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Banks Offer Mortgage Rates Below 5 Percent

Homes for sale in Jacksonville and Orange Park Florida have never looked better! Thanks to good 'ole Uncle Sam and a move by the Federal Reserve intended to "perk up" the ailing residential real estate market, some major banks across the nation are offering Fixed Home Loans under 5%...yea baby!

The Federal Reserve began purchasing $500 billion in mortgage securities backed by Fannie and Ginnie Mae and Freddie Mac.

For anyone who has ever dreamed of owning a home...this is your chance! The money is cheap and there are many fantastic deals to be had. Real estate is and always has been cyclical. Many people over the last few years bought high and are now forced to sell low.

The market shift has created an opportunity to buy low and ride the cycle back up!

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St Augustine Better Than A Model!

Springhealth Court in Heritage Landing - FANTASTICALLY UPGRADED!

Pics and info at: This weeks Best Buy

How do you know when your neighbors Jacksonville or Orange Park house is too close to yours????

You sneeze in YOUR bathroom and the dog next door starts barking!

Your neighbor knocks on your door every evening just about the time dinner is being served!

When you roll your garbage can out to the street and it rubs against the house next door!

You crank up the popcorn popper and nosy next door calls and asks what movie you're watching!

Your neighbors dryer lint is collecting on the side of your house!

Your neighbor pushes buttons on his remote control and messes your TV up!

No matter if you want a home close to others or far away we can help you find the perfect one!

It's that time again Florida Property owners. Tax season is upon us. If in 2008 you purchased a home in Jacksonville, Orange Park, Green Cove Springs, Middleburg or any other city in Florida and you plan on using it as your primary residence, and you haven't already done so..... it's time to file for Homestead Exemption. The deadline is fast approaching and you don't want to miss out. I picked up this information at the Jacksonville Property Appraisers Office when I filed for my homestead exemption.

Exemptions

What is a Homestead Exemption?

There are a number of state and local laws providing exemptions that can result in a lower taxable value on certain properties. The homestead exemption is the most common and can provide up to $50,000 off the assessed value of a property used as the owners primary residence. This includes an initial $25,000 exemption and a newly adopted additional exemption (up to $25,000) off the assessed value over $50,000. The new additional homestead exemption does not apply to the school tax levy, and does not require an application. Once the homestead exemption is established, it is renewed automatically unless there are changes in ownership.

Another benefit of the homestead exemption is the establishment of the "Save Our Homes" cap on annual increases in the assessed value. (see, "Save Our Homes" section) The assessed value of homesteaded property cannot increase more than 3% each year unless there are changes made to the property or the homestead is removed.

As a member of the Armed Forces, can I keep my homestead exemption and rent my home while I'm away?

Yes. As a member of the Armed Forces, Florida law allows you rent your residence and keep your homestead exemption if you are transferred out of the county. However, you are not allowed to have another homestead exemption. You must provide the Property Appraisers office (PAO) with a copy of your military orders and a current mailing address to ensure the renewal of your homestead exemption. Each time there is a change to your orders, the PAO must be notified.

Can I receive a homestead exemption on a mobile home?

You may receive a homestead exemption only if you own both the land and the mobile home. You must provide the Property appraisers Office with the title or registration to the mobile home along with proof of ownership of the land.

Do I lose my homestead exemption when ownership changes due to death of a spouse, marriage, divorce or the addition of an owner or natural dependent?

Not necessarily, but each case is different. However, a homestead exemption application is necessary to update records in order to ensure eligibility. Please contact the Customer Service/Exemptions Division regarding your situation.

How To Apply - Duval County

Applicants should apply for ALL exemptions and portability by March 1^st. (Late filings result in a $15 late fee, and are accepted until the 25^th day following the mailing of the Notices of Proposed Property taxes in mid- August) To apply for exemptions and portability you must have owned and lived in the home on January 1^st. Exemptions and portability applications for Duval County can be obtained online at www.COJ.net/PA, from the Customer Service/Exemptions Division at 231 E Forsyth Street, Suite #260 or by calling (904) 630-2020. All owners residing on the property (with the exception of both the husband and wife) must apply for the exemption. Proof of ownership, Florida residency, citizenship, and the Social Security numbers of owners (and spouse) are needed to file.

Are there other exemptions?

There are a variety of other exemptions including those for widows/widowers, disabled persons, disabled veterans, low income senior citizens 65 or older, charitable organizations and tax discounts for those who renovate properties as living quarters for elderly relatives There is even a historical preservation exemption for the renovation of historic structures or properties in historic neighborhoods. Criteria for exemptions may vary. Information on these and other exemptions relating to Duval County is available online at www.COJ.net/PA

SAVE OUR HOMES/PORTABILITY

How much does the assessment on my home increase each year?

With a homestead exemption, your property's assessed value will only increase 3% or less each year - unless the homestead is removed, there is a change in ownership, or changes are made to the property. "Save Our Homes" (SOH) is an amendment to the Florida Constitution limiting the increase in assessed value of a homesteaded property to 3 percent or the annual National Consumer Price Index (CPI) whichever is less. Only properties with a homestead exemption qualify. Once a property is sold the SOH limitation is removed and the assessed value becomes equal to the market value, unless the new homeowners have portability.

What is Portability?

Portability is a new law that allows previously homesteaded property owners in Florida to transfer, or "port" a portion or all of the "Save Our Homes" benefit from their previous home to a new home. If the new homes market value on record is higher than the old homes market value, the owner may transfer the entire "Save Our Homes" benefit (difference between the market and assessed values of the old home) to the new home. This amount would be subtracted from the PAO's market value of the new home to create a new assessed value. If the new home has a lower market value than the old home, the property owner may transfer the benefit as a percentage ( a difference as a percentage of the old market value) and apply that to the new homes market value.

You may not port more than $500,000. If you are establishing a new homestead exemption and wish to "port" the SOH benefit from your previous home, you may be eligible for portability if you had a homestead exemption on your previous home in either of the two preceding years Tax Roll years ( back to 2007). Be aware that this is not two years between sale and purchase dates. If you have questions regarding eligibility in Duval County, please contact the Customer Service/Exemptions Division at (904) 630-2020.

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