2. The first time buyers who have been standing at the side line and prospecting have a good chance to look for their dream homes and borrow with confidence. a. Because this is buyers’ market, they have more houses to choose from and more power to borrow, b. With the low rates, they are sententiously saving hundreds of dollars compared with people who purchased withing the last two years.
One thing we know about the 2008 Economic Stimulus Package is that we’ll get rebate check, hopefully in June or July. As long as we qualified, (single income no more than $75,000, and joint income no more than $150,000 and assuming you file your 2007 income tax by the tax day, April 15, 2008).
There are other sections regarding of this package, as I have written twice before, one of them is the rise of Fannie Mae, Freddie Mac and FHA approved conforming loans from $417,000 to $729,500. And most of all, the businesses will have tax break if they bought new equipments in 2007 to increase work force.
Though the details of the increasing conforming loan have not been released yet(in Mid-March). This is such an exciting news to Real Estate professionals. (see National Real Estate Association released memo). There are at least two things we know the good side of it:1. People who bought the houses in the past three years have more power to control how much they will pay on their mortgage. The interest rates have been fallen to three year low these days now, so for those who were tight in their loans, can refinance, borrow more money, get a lower rate, and stretch out for a longer term to relief temporary for the burden.