Extending the Home Buyer Credit

The National Association of Realtors (NAR) has been leading a push to get part of the Federal Home Buyer Tax Credit extended. But don’t get too excited – their proposal won’t give allow anyone new to claim the credit. Before diving into the details, here is a quick review of the current rules of the game: 1. First time buyer or existing owner (extra criteria). 2. Binding purchase contract by April 30, 2010. 3. Closing

To Refinance or Not To Refinance (part 2)

Yesterday we went over some of the reasons why the current low interest rates are unlikely to spur a dramatic wave of refinancing activity. However, trying to capture a lower interest rate may make sense for homeowners that have equity in their property, strong credit scores and available cash. Today we’re going to run some numbers to try to quantify the benefit of a lower interest rate. Assumptions 1. Homeowner purchased a home one year