No one can seem to agree what do to with the economy. There are good ideas, bad ideas and crazy ideas. However, some of the things I heard today sound like Great Ideas!
Who knows what exactly will get passed in this new Legislation; but some of the tax incentives they are talking about just might do the trick.
First-Time Home Buyer Tax Credit
- Last year there was a $7500 tax credit put into place. However it must be paid back. This new plan works like the DC 1st Time Home Buyer Tax credit; where the credit does NOT have to paid back. More importantly, the Senate wants it at $15,000. WOW. Now that's an incentive!
4% Interest Rate Buy-Down
- The second thing being considered that is directly related to Real Estate is a federally subsidized Interest Rate Buy-Down to 4% for a 30-Year Fixed Rate. Wow - would that help folks? Would this get buyers off the fence?
One of the big issues that these do not solve is the home owners who are in trouble. Those who cannot afford their loan. So if we offer them a 4% Interest Rate - that would, in many circumstances, allow them to save their home. It should lower their payment significantly. HOWEVER - they can't refinance if the are UPSIDE DOWN.
This is a start - but will it work? For some maybe to help buy. But not those who are already struggling.
Read Stories about the Stimulus Bill.
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