Lake Mary First Time Home Buyers… perk up. We all know what inflation is and the ugliness that can go with it. Most of us know that deflation is the opposite of inflation…. but don;t know much more than that.
In fact, business TV and newspapers have inflated deflation [sorry for the play on words… but I like doin’ that] as a hot topic this week and, since Monday, Google has tracked 13,000 mentions of it. Make this 13001.
Deflation is a recurring cycle in which the prices of goods and services fall. Suh-weet… falling prices that is so cool, right? Well, um, not really. Why? Human nature.
When prices are declining across many industries at the same time, IT CAN SHUT DOWN THE ECONOMY!
If you think about it…
Find out the ugly truth of deflation by finishing the blog post here:
Talk of Deflation – What Lake Mary First Time Home Buyers Need?
(Image courtesy: The Wall Street Journal)
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Chris Brown
All Around Good Guy
Trinity Mortgage
153 Parliament Loop
#1001 Lake Mary, Florida, 32746 |
Work: 407 377 0500 x 210
Chris@OrlMtgPro.com
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Posted in Borrowers, Economic News, FHA Loans, Home Buyers, Mortgage Advice, Rate Shoppers | Tagged: $7500 Tax Credit, chris brown, deflation, deflations effect on real estate, first time home buyer tax credit, lake mary mortgages, lake mary real estate, lower mortgages rates, orlando interest rates | Leave a Comment » IRS funded Orlando Down Payment AssistancePosted by Chris Brown on October 7, 2008 Okay, we all know that the loss [unless something changes] of Ameridream and Nehemiah is going to stifle the first-time buyer’s ability to jump in the market, do we not?
I am talking, obviously, about the new $7500 Tax Credit for First-time home buyers. How do we position this so that buyers can legitimately see the benefit and be willing to re-engage. First things first. What is the difference between a Tax Deduction and a Tax Credit Tax Deduction –The benefit is relative to the tax bracket that the last dollars of your income falls in. For example, if you had a $7500 tax deduction in a 25% bracket, the realized benefit would be $1875.00 [7500 x .25 = 1875] Tax Credit – A dollar for dollar reduction of your tax liability. If you owe $4000 in taxes, a $4000 tax credit, would wipe it out completely and any taxes you had paid through your withholding would be returned to you. The Example Now…. 1. Assuming the tax credit is coupled with FHA financing [what isn’t these days?], they will still need the 3% down at the closing table. This can still be a gift. Imagine this … [Ring… ring… Hi, Mom? I know you haven’t heard from me since your last birthday… I hope you got my belated card. Sorry I couldn’t make it over, but Spike had diarrhea. Listen, anyway… we were thinking about buying a house…] 2. Lets say that Mr. and Mrs. Firsttimebuyersonsteinburg, through their withholding out of their w-2’d job, end up having $3750 as a tax liability for the year. Well, at the time of their tax-refund, that $3750 would be returned to them as a “check from the gov’t”. [Sorry for the quotes, don’t get me started on that.] 3. Now with that $3750 in hand, they can either thank Mom & Dad by gifting the money back, more creatively sending them on a weeks cruise or something, or in many cases…likely most… keep it. The end result, however is that they still get the 100% financing… they just have to wait for the $$ to come full circle. Just a thought. FYI: Now, just because seller-assisted DPA is going away, it doesn;t mean that there is still not other things available. Here locally, the SHIP program is still something that people turn to, in fact, Heather Joubran of Re/Max Central Realty is one of those that goes above and beyond for her clients… read the story of what she recently did. Chris the Implementer P.S. Want to do what YOU can to help save DPA? Visit DPA Groundswell. Chris the Implementer Orlando Mortgages | Orlando Credit Repair | Orlando FHA Loans Posted in Borrowers, FHA Loans, Home Buyers, Mortgage Advice, Rate Shoppers | Tagged: $7500 Tax Credit, 100 percent financing, 100% financing, Down Payment Assistance, first time home buyer tax credit, heather joubran, SHIP, ship program | Leave a Comment » | ||
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