Inflation and Interest Rates

What’s Going on with Inflation and Interest Rates?

If you’ve seen the news lately, you know concerns about inflation are increasing. But what does it really mean to you?

The fact is, inflation is a very serious issue, and it will likely be on the rise as 2009 proceeds…and along with it, home loan rates will rise too.

To help you learn more about this important topic, I want to send you a link to a short video, featuring the nation’s foremost mortgage industry expert. In this video, you’ll learn how inflation impacts interest rates and what the outlook is for down the road.

Because home loan rates will be on the rise, if you or any of your family, friends, neighbors or co-workers have been considering a purchase or refinance, now’s the time to act.

Please contact me today to discuss your specific situation, and feel free to forward this email and video link along to others that you think might benefit from it as well.

Watch the Video

Thank you,

Matt Steinmetz

Envoy Mortgage

2151-P Salvio St.

Concord, CA 94520

Phone 925-671-9501 x119

Fax 925-940-9639

msteinmetz@envoymtg.com

Learn When to Pay Points

Information about the $8,000 First Time Buyer Tax Credit

Information about the $10,000 New Home Tax Credit in CA

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First Time Buyer Tax Credit

Here is a link to the flyer

New $8,000 Tax Credit for First-time Home Buyers- is set to end soon!
Great news for first-time home buyers in 2009! The stimulus plan that President Obama signed into law contains a new
$8,000 tax credit for qualified first-time home buyers. And, unlike the $7,500 tax credit from last year, this credit does NOT
have to be repaid to the government, as long as you stay in the home for at least 36 months after the purchase date.
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax
you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be
claimed even if the taxpayer has little or no federal income tax liability to offset.

Who?
First-time buyers or anyone who hasn’t owned a home in the 3 years prior to a purchase of a primary residence may qualify
for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer’s
modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a
joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married
taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you
or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer,
cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as
having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a
typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home
first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having
already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use
form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate.
Add to that this $8,000 gift from the government, and renting a home just doesn’t make much sense.
If you or someone you know is ready to stop paying the landlord’s mortgage and start building equity in your own home, give
us a call. We’ll run the numbers and see what makes sense for your individual financial needs.

Matt Steinmetz
Envoy Mortgage

06/29/2009 – Mortgage Bonds Get Support

The over supply I have been speaking of below and on the news tab is now seeing some demand. I hope it’s enough to lower mortgage rates further.
China was a big buyer of our mortgages and had lost faith in their performance for a bit. They have now come out and said they will resume buying. The reason for this is interesting. The U.S. is the #1 buyer of Chinese exports and if our dollar weakens, or their Yuan strengthens in contrast to our dollar, Chinese products in the U.S. get more expensinve. China does not want the U.S. to slow it’s purchasing, so in turn it reinvests the dollars into our bonds market to help strengthen our dollar. Very smart and interesting.

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