Brentwood Press - Index

Brentwood Press - OakleyPress_08.15.08 - Index

AUGUST 15, 2008 THEPRESS.NET | 15A
Trevor’s Weekly Mortgage Matters
By Trevor Frey
HOW CONGRESS IS STEPPING UP TO THE PLATE
FOR FIRST TIME BUYERS
With all of the doom and gloom in the real
estate market how about some good news for
a change. Major congressional bill H.R. 3221,
the Housing and Economic Recovery Act of
2008, passed the House on July 23, the Senate on
Saturday July 26, and was signed by the President
into law on July 30th 2008. Although H.R. 3221,
holds many positive notes for both future home
buyers and current home owners alike, let’s spend
this week on first time buyers and take next week
to focus on current home owners.
As with anything, to know where we are
going we first have to know where we’ve been. In
1975 Congress implemented a $2,000 tax credit
that helped turn around the housing slump by
clearing out the glut of new, unsold homes as half
a million people used the support to purchase
their first home. Thanks to H.R. 3221, from April
9, 2008 through June 30, 2009, qualified first time
buyers will once again be aided by the government
in the form of a $7,500.00 tax credit (different than
a tax deduction) that can be applied to their 2008
or 2009 tax returns.
516.1617
9030 Brentwood Blvd, Ste B
(across from the Police Dept at Harvest Commerce Center)
Using a sample tax bracket of 28% and
a purchase price of $350,000.00, a new home
owner has the opportunity to write off an extra
$26,442.50 thanks to home ownership, and possibly
amend their W-4 with their employer to
increase monthly take home income by $616.99!
In addition to the annual interest and real estate
tax deduction, this new credit provides first time
buyers with the potential to lower their federal
taxes by $7,500.00 (check with your CPA to see
how you can personally benefit). It’s a win-win for
the first time home buyer!
I hope you’ve found this information useful
as it’s my goal to aid this ever changing real estate
market and the community it directly affects with
fresh and up-to-date weekly information. You can
do your part to help by writing in to tfrey@mortgagewestco.com
or calling me directly at 925-820-
7110 with any real estate lending related questions
or concerns that you have on your mind. Who
knows, your question could just be the feature of a
future article!
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