Top 3 Benefits of HR 3221

The Housing and Economic Recovery Act of 2008 is a $300 Billion rescue plan aimed at helping struggling homeowners avoid foreclosure. Although the bill is several hundred pages long and contains a number of far-reaching provisions, here are the top three changes that may benefit you:

1. Tax credits. First-time home buyers who purchase their primary residence between April 8, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest-free loan that is paid back over 15 years at $500 per year when taxes are filed.

2. Larger loans at lower rates. This is a great benefit for homeowners with "jumbo" mortgages, which range between $417,000 and $625,000. If you are considering purchasing a home in that price range, this provision may be ideal for you. Please call or email to schedule a meeting to discuss your options.

3. FHA Hope for Homeowners. This provision is designed to help homeowners who are "upside down" on their mortgage - that is, people who owe more on their house than they can sell it for in today's market. Essentially, this plan allows borrowers who meet specific requirements to refinance their mortgages to new 30-year fixed FHA mortgages. If you're upside down on your mortgage and struggling in today's economy, this is an option worth exploring.

Mortgage Interest Rates*

Rates as of Friday, 7th November, 2008:

 

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

30-Yr. fixed

6.125%

6.265%

$6.08

6.625%

6.722%

$6.40

15-Yr. fixed

5.875%

6.107%

$8.37

5.875%

6.030%

$8.37

7-Yr. fixed ARM

6.250%

6.391%

$6.16

6.000%

6.093%

$6.00

5-Yr. fixed ARM

5.500%

5.635%

$5.68

5.750%

5.842%

$5.84

3-Yr. fixed ARM

5.500%

5.635%

$5.68

5.625%

5.716%

$5.76

5-Yr. Interest Only

5.625%

5.761%

$4.69

6.000%

6.093%

$5.00

 

 

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Licensed Mortgage Banker, NJ Department of Banking and Insurance. Corporation also services CO, CT, DE, FL, GA, IN, MA, MD, MN, MI, NC, NH, NY, PA, SC, TN, VA, & RI.

 
2 comments • Karl Peidl - Accredited Loan Consultant • November 07 2008 12:17PM

Comments

Karl,

Hopefully it will provide some win's for those who truly need it.

Posted by Dan Brudnok-REALTOR,e-PRO,ABR,GREEN,CSP Chester County RE Professional (Keller Williams - Exton - PA License Number #RS225179L ) about 3 years ago

Dan - Hopefully it will.  We just need to get the message out so people know what is available to them.

Posted by Karl Peidl - Accredited Loan Consultant about 3 years ago

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