Updates to TAX CREDITS for HOME and CONDO BUYERS in Smyrna

Who is Eligible

• First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. 
• Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit. 
• All U.S. citizens who file taxes are eligible to participate in the program. 

Income Limits

• Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.  
• For married couples filing a joint return, the combined income limit is $225,000. 
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.  
• The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. 

Effective Dates

• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.  

 Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.   

 Tax Credit is Refundable

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference. 
• For example:  
  • A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time home buyer tax credit).  
  • A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). 
• All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return. 

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

Mortgage rates down!

BOND YIELDS PUSH MORTGAGE RATES DOWN SLIGHTLY THIS WEEK

McLean, VA - Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.08 percent with an average 0.7 point for the week ending September 3, 2009, down from last week when it averaged 5.14 percent. Last y

FHA Streamline Refinance Mortgages are Popular Now

FHA streamline refinance mortgage

The FHA streamline refinance program is good news for homeowners who currently have an FHA insured mortgage. This program is the closest thing mortgage lenders have to a “no-doc” loan with decent interest rates. The basic premise of the program is simple; if borrowers are lowering their monthly payments, it must be good for them. FHA streamline refinances are a popular choice for a number of reasons.



Here are some of the features of the program:



1.For borrowers with FHA mortgages with a good payment history

To be eligible for the FHA streamline refinance program, borrowers must currently have a mortgage insured by the Federal Housing Administration (An FHA loan). They must have a good payment history in the last 12 months. (Good generally means not late 30 days more than once in the last 12 months. Additionally, the current FHA mortgage must not be behind at the time of application.

2.FHA Streamline Refinance does Not use a Credit Score

While the lender will run your credit report to check the mortgage history, the report is not used to determine eligibility for the FHA streamline refinance program. In other words, a borrower’s credit score isn’t used. Neither are late payments, collections or judgements on accounts other than the mortgage being refinanced.

3.No Income or Asset Verification

Income and assets of the borrower are not verified for the FHA streamline refinance program. It is important to note that the customer must have a job and must have a bank account.

4.No New Appraisal

A new appraised value is not used. Decreasing home values have been a barrier to refinancing for many borrowers in this environment. The FHA streamline refinance eliminates this barrier. Even if the customer’s home value is less than the amount of the mortgage, it’s still okay.

5.Secondary Financing Okay

Second mortgages and home equity loans are fine in conjunction with the FHA streamline refinance program, even if they are above the value of the house. The second-mortgage lienholder (the bank that the customer makes payments to) must agree to subordinate the loan. That means that the second mortgage will take second lien position behind the new FHA mortgage.

6.30 Year Fixed Interest Rates

The FHA streamline refinance program is offered with 30 year fixed and 15 year fixed interest rates, which are very competitive. Often, the rates are as low as, if not lower than, conventional conforming interest rates.

7.Closing Costs can be Rolled into the Mortgage

Borrowers can choose to roll their mortgage closing costs into their new FHA streamline refinance if they choose to. However, the new loan amount can not exceed the original FHA mortgage loan amount.

8.No Cost and Low Cost Mortgages Available

FHA mortgage lenders have the ability to pay a portion or all of the closing costs incurred with the FHA streamline refinance program. Generally, borrowers pay a slightly higher interest rate than if they pay the closing costs directly, or roll them into the mortgage amount.

9.No Cash Out

The FHA streamline refinance program does not allow for cash out.

10.Borrowers Must be Bettering their Situation

The FHA streamline refinance must result in a lowering of the borrowers principal and interest payments.

For borrowers that have an FHA mortgage currently, the FHA streamline refinance program may be a good way to lower their mortgage payments. Call us at 770-792-7979 ext 107 or click here to email us Today!

Meet Congressman Tom Price to discuss Healthcare

This just in from Cobb Chamber of Commerce:
Congress is currently considering legislation, that would significantly change healthcare in America. These drastic changes in policy are sure to affect all businesses. We invite you to share your thoughts and concerns on this issue, by participating in a conference call led by Congressman Tom Price.
The call will be held on Wednesday, July 29 at 9:30 a.m. Please R.S.V.P. to Thomas Beusse at (770) 565-4990 or thomas.beusse@mail.house.gov.

Where's your mortgage rate headed this week?

What's Ahead For Mortgage Rates This Week : July 20, 2009Mortgage markets had a tuff week last week as a combination of strong economic data and stand-out earnings results led investors into more risky investments. The Dow Jones Industrial Average was up 7 percent.Mortgage rates, unfortunately, didn't fare as well. As the first week since June in which mortgage rates rose, rates were up by a lot. Mostly for three reasons.The week's first big mortgage rate bump came Tuesday, right after Goldman Sachs released its blowout quarterly numbers. As one of the world's largest financial firms, Goldman's strong showing hinted that the financial crisis may finally be finished.Next, rates were impacted by the release of the Fed Minutes from its June meeting. In the report, it was revealed that Ben Bernanke & Co raised the economic forecast for both 2009 and 2010, noting that the recession should be ending soon.Lastly, June data showed that Retail Sales is expanding and that jobless claims are falling -- two potential positives for the U.S. economy that relies so heavily on consumer spending.This week, without much data, the mortgage market should continue to take its cue from the stock market. If stocks improve, rates are expected to worsen. And vice versa.The week's key events are Fed Chairman Bernanke's Tuesday testimony on Capitol Hill and Thursday's Existing Home Sales data. Mortgage rates remain volatile so if you're offered a rate that comfortably fits your household budget, consider locking in before the market can change.
Posted by Capital Credit at 11:28 AM

The First-Time Home Buyer Tax Credit : Use It By December 1, 2009 Or Lose It

The First-Time Home Buyer Tax Credit : Use It By December 1, 2009 Or Lose It

The government's First-Time Home Buyer Tax Credit expires December 1, 2009.

If you expect to use the program in conjunction with a home purchase, therefore, you may want to consider yourself officially "on the clock".

Assuming a 60-day window between contract and closing, there are now 77 days left to find a home and go under contract for it.

The First-Time Home Buyer Tax Credit refunds up to $8,000 at Tax Time for qualified home buyers. A few of the program's qualification criteria include:

• Home buyer must not have owned a primary residence in the past 36 months
• The home may not be purchased from a family member
• The household adjusted gross income must be below $95,000 for single tax filers and $170,000 for joint tax filers

The tax credit itself is limited to $8,000 or 10% of the purchase price, whichever is less.

Remember, though: The refund is a true tax credit -- not a deduction. This means that a taxpayer owing $8,000 to the IRS and claiming the $8,000 First-Time Home Buyer Tax Credit would owe the IRS nothing on April 15, 2010.

The complete list of qualifying criteria is posted on the IRS website.

HTTP://WWW.ATLLOANS.COM PETER BRIGHT

Ready to go Green?

Ready to go Green? You can do this!

We stumbled across a resource recently that could be utilized by anybody. www.localharvest.org provides a search to find nearby farmers’ markets, family farms and others sources of sustainably grown food where your residents can buy produce, grass-fed meats, honey products and many other goodies, including gift baskets.


Hope to see you Green this month.

Ready to go Green?

Adjusting For Cost Of Living Differences After A Non-Local Move

Moving to a new metropolitan area requires adjustments. There's new streets to learn, new weather patterns to get used to, and new social cultures to assimilate.

There's also new costs.

Just like home values vary by area, so does the Cost of Living. To visit a doctor in Chicago, as an example, costs a person more than to visit a similar-type doctor in Smyrna, GA.

Cost of Living adjustments can't be ignored between two cities because it changes a household's budget.

And while it's a challenge to know exactly how far your dollar can stretch in a new town, Bankrate.com hosts a helpful Cost of Living Comparison Calculator to make the math a little easier. With categories such as dry cleaning, groceries and beauty salon, the calculator goes extra deep into the typical costs to a household, and can help families to make more realistic budgets.

The calculator also shows the equivalent household income between any two metropolitan areas. Check out Smyrna compares!

2nd Annual International Wine Crawl - June 20

The 2nd annual Vinings International Wine Crawl will be this Saturday June 20 from 1-7 pm. Enjoy great food specials and wine offerings from all over the world. Garrison's, Social Vinings, Soho, The Grape, La Paz and Vinings Inn are all participating. Cover charge is $5 in advance or $10 at the door and a portion of the proceeds go to Upper Chattahooche Riverkeeper. Register at Social Vinings (1-6pm), 3621 Vinings Slope Dr., Ste 4110, Atlanta, GA 30339, close to Quick Trip. www.atlantabartours.com

Retail for the River will be earlier that same day from 11am - 5pm at Vinings Jubliee. Special offers and coupons are available for that day from free massages compliments of Integral Chiropractic to 75% off select items at American Mountain and more. www.RetailForTheRiver.com

Presented by Atlanta Bar Tours.com, USA Entertainment and Tred Setting Productions.

How To Receive A Cash Gift For Downpayment

Tighter mortgage guidelines since late-2008 are forcing home buyers to make bigger downpayments. Anecdotally, the change has led to a surge in buyers taking gifts of cash from family members.

If you're among those accepting a cash gift from family, it's important to know that you can't just deposit the money in your bank account.

There is a proper way to accept a cash gift and it requires 3 distinct steps:

Complete and sign an acceptable gift letter
Document the gifter's withdrawal of funds with teller receipts
Document the giftee's deposit of funds with teller receipts
See, mortgage lenders pay close attention to gifts-for-downpayments. For one, lenders have to make sure that downpayment cash is "clean" (i.e. not laundered). And, secondly, they want the gift to really be a gift and not a loan-in-disguise.

This is why lenders will often require that a signed, dated letter accompany the home loan application.

As an example:

I am the [relationship to recipient] of [name of recipient] and this letter serves as evidence that I am gifting [name of recipient] [amount of gift] to be used for the purchase of the home at [complete address of property].

This is a gift -- not a loan -- and there is no expectation of repayment.

Signed,
[Signature of gifter]

To further appease lenders, gift recipients should make sure that gift funds are not commingled at the time of deposit. If the gift is for $12,000, for example, the bank's deposit slip should indicate that a $12,000 deposit was made -- nothing more, nothing less.

Don't add a random $50 check to the deposit, in other words. If you have a separate deposit to make, make it as a subsequent transaction with its own receipt.

It's also worth noting that gifting funds between family members can create both legal and tax liabilities. If you're unsure about how donating or receiving a gift may impact you, call or email me directly. If I can't help you with your questions, I can refer you to somebody that can.

Pints For Pups In Vinings

2nd Annual Pints For Pups

1:00PM - 4:00PM at Meehan's in Vinings
2810 Paces Ferry Rd., Vinings, GA
770-433-1920




Meehan's, Vinings, is hosting the 2nd Annual Pint for Pups on June 4th from 1-4pm!

This afternoon of fun will support needy animals in Atlanta. This event is held in honor of Angela Putman, and proceeds benefit Atlanta Pet Rescue, a non-profit, no-kill shelter dedicated to rescuing unwanted pets. With last year being such a great success they hope this year even more money can be raised to help the many animals in need. Please come out and join everyone for a good cause!

Food and drink specials, a DJ on the patio, and an extensive silent auction. There will be items for everyone and for everyone's budget. Also, Atlanta Pet Rescue will be on hand with pet adoption information. And feel free to bring your furry friend to hang out on the patio! Also, we are still talking items and services to add to the silent auction so please contact Meehan's if you would like to donate. See you there!

Fastest way to stop junk mail?

contact: the Direct Marketing Association’s Mail Preference Service at PO Box 643, Carmel NY 10512 or fill out their online form here: http://www.dmaconsumers.org/consumerassistance.html . A free way to save the planet and you will not be tempted to sign up for some junk you do not need anyway.

Fresh Market Every Saturday in Downtown Smyrna

Starting Saturdays in May through September a new local farmer's market for Smyrna residents will be open. The market will be open from 8am to 1pm. Be sure to get there early for the best selection.

See www.SmyrnaCity.com for information on how to be a vendor.

State of GA offering $1,800 Tax Credit for Home Buyers

Governor Purdue signed into law House Bill 261 that authorizes a one time tax credit of 1.2% of a homes purchase price up to $1,800.




First time buyers in Georgia can combine this with the $8,000 credit from the Federal Government as long as the purchase is closed by November 30, 2009. If you are not already shopping for a place in Smyrna then you should start.

Housing Starts Are No Longer Falling, Another Positive Signal In Housing

A "housing start" is a new home on which construction has started and, for the fourth straight month, single-family home construction remained flat in April.

For the battered housing market, this is the latest in a series of signals that a long-awaited turnaround is coming.

* The number of homes under contract to sell are rising
* The national housing inventory is down by nearly 1 million from March 2009
* Home values are rising, according to a government report

The current plateau in Housing Starts may indicate that builders are more confident in the economy, and that Americans are, too. Especially in light of the free fall over the past few years.

Single-Family Housing Starts have hugged the 360,000 mark since January 2009.

However, there is a footnote to the story.

As noted by the Commerce Department in its official report, the April Housing Starts conclusion is suspect because of the data's large Margin of Error. Had the government's sample set included a different series of data, in other words, it may have concluded that housing starts had fallen instead of staying flat. Or risen.

We won't know the final results of the report until 3 months from now but if the initial figures hold, it will fortify the argument that the housing market has, indeed, found its bottom.

How Credit Cards May Be Replacing Home Equity

How Credit Cards May Be Replacing Home Equity As A Funding Source

Credit card spending is increasing

As mortgage guidelines loosened between 2002 and 2006, homeowners often used their home equity to retire credit card and other consumer debt. They did this by increasing the size of the mortgage and taking "cash out" from their home.

As you'd expect, this type of mortgage transaction is called a "cash out" refinance.

Well, now that mortgage guidelines are tightening, it's growing more difficult for a homeowner to engage in this type of home loan.

Mortgage lenders are restricting the total amount of equity that can be withdrawn from a home, usually as a percentage of the home's value.

This may be one reason why the amount of credit card debt is rapidly increasing among Americans.

Throughout May and June, for example, credit card balances increased 12% and 8% respectively even as consumer spending remained relatively flat.

Therefore, we can hypothesize that Americans -- unable to "cash out" from their homes -- are putting more money on their credit cards and slowly reaching their collective credit limits (upon which the borrowing stops).

When the borrowing stops, spending stops, too, and this has the impact of slowing down the economy.

A slower economy, of course, reduces inflationary pressures and that makes the U.S. dollar stronger to international investors. That strength, in turn, creates buying pressure on mortgage bonds which pushes mortgage rates down for everyone. Naturally, lower rates encourage more borrowing.

Yes, it's a cycle. And it's one worth watchin

Angels and Demons in Mortgage rates

Angels and Demons and Mortgage rates



Retail Sales are down worse-than-expected for April 2009. After a dreadful start to the month of May, mortgage markets improved last week, pushing mortgage rates lower overall. The ANGELs.

It was the first week since late-April in which mortgage rates fell.

The biggest reason rates improved last week was because the economic optimism that was responsible for the stock market's 30% gain since March faded somewhat.

Retail Sales came in weaker-than-expected as did Initial Jobless claims. Both of these data points show that the economy may not be recovering as quickly as investors had wanted to believe.

Combined with gas prices ballooning more than 10 percent over the last 3 weeks, it's clear that consumer spending will be muted this summer and into fall. THE DEMONS

Consumer spending is important because it accounts for two-third of the economy. If it's slowed for any reason, the economy is less likely to emerge from the current recession as quickly as had been anticipated. THE DEMONS

This is good news for mortgage rates because a slow economy tends to draw investors out of stocks and into bonds, including the mortgage-backed kind. More mortgage bond demand leads to higher bond prices and, therefore, lower bond yields and mortgage rates. THE ANGELS

This week, there isn't much data to watch and, because of Memorial Day, trading will be very light towards Thursday and Friday. THE ANGELS

It's during "calm" weeks like this that mortgage rates can make huge movements up or down. With no official announcements against which traders can make bets, every piece of news is a surprise. THE DEMONS

If you're still floating a mortgage rate, take some risk off the table by locking in this week. Call 404.643.4793 or see http://www.atlloans.com/

Mortgage Rates Higher in Smyrna On April's 539,000 Jobs Lost

Non-Farm Payrolls for May 2007 to April 2009The economy shed 539,000 jobs in April, raising the 6-month total to nearly 4 million jobs lost.

And while the April data may look bad, it's actually 10% better than what was expected.

As a result, it's turning into a bad day to be shopping for mortgage rates.

After bottoming out early last week, conforming, 30-year fixed rate mortgages have risen in cost by as much as three-quarters of a percent. Today's good-for-the-economy report may push costs higher still.

Now, it may seem odd to categorize 539-thousand lost jobs as "good-for-the-economy", but it's important to remember that on Wall Street, expectations are everything.

Investors are constantly buying and selling securities based on what they think will happen in the future. And, up until this morning, there was an expectation that 600-thousand jobs had been lost in April.

As it turns out -- relative -- the actual job loss data wasn't so bad.

Now, markets are making adjustments and re-forming expectations of what's ahead for the economy. They're preparing for things like higher levels of consumer spending in the months ahead, and fewer home foreclosures nationwide. Both outcomes would help to spur the economy from recession.

This helps explain the stock market's early rally, too.

For now, mortgage markets remain sensitive to whiffs of an economic recovery. In general, if there's good news for the country, it going to be bad news for mortgage rates.

Mortgage rates are off slightly in advance of the weekend.