Mortgage Rates Fall To All-Time Low.

By Troy Corman, todayshomedeals.com

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According to Freddie Mac, the 30-year fixed-rate mortgage average fell to 4.78% with an average 0.7 point for the week ending Nov. 25. Previously, the average 30-year mortgage rate was 4.83%, while the average a year ago was 5.97%.

Fifteen-year fixed-rate mortgages averaged 4.29% for the week ending Nov. 25. The 15-year rate is the lowest in Freddie Mac's history. This week's average is down from 4.32% last week and 5.74% a year ago. House prices are slowly beginning to firm now and I suspect they will continue to rise the closer we get to the new April 30, 2010 government home buyer refund deadline.

Home Buyer Tax Credit Extended AND Expanded For Higher Incomes And Current Home Owners.

By Troy Corman, todayshomedeals.com

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The new Worker, Homeownership and Business Assistance Act of 2009 has extended the deadline for the government tax refund for home buyers. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010.

Income limits have also been raised. Singles with modified adjusted gross incomes of up to $145,000 can qualify although phase-outs begin at $125,000. For couples filing jointly, the credit begins phasing out at $225,000 and modified adjusted gross incomes above $245,000 do not qualify.

Also, home owners who have lived in their current principal residence for 5 years can qualify for up to a $6,500 credit.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

The credit:

* Applies only to homes used as a taxpayer's principal residence.
* Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
* Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

With interest rates near record lows, a plethora of bank-owned properties that need to sell, and Uncle Sam forking over free money, don't be one of those who looks back in a few years and says, "shoulda, coulda, woulda".

Obama Administration Feeling The Heat Of Increasing Foreclosures - Blames The Banks.

By Troy Corman, todayshomedeals.com

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According to an article in the New York Times, the Obama administration has announced that on Monday it will pressure mortgage companies to reduce payments for more troubled buyers facing possible foreclosure. The $75 BILLION taxpayer-financed modification program aimed at stemming foreclosures has been a colossal failure.

Once again, the administration is pointing fingers at others, and now is blaming the banks and the mortgage servicers for another government billion-dollar bailout gone bad.

The banks are not doing a good enough job,” Michael S. Barr, Treasury’s assistant secretary for financial institutions, said in an interview Friday. “Some of the firms ought to be embarrassed, and they will be.”

Lenders are reducing mortgage payments for borrowers at an increased speed, but most of the loans modified through the Making Home Affordable program remain in a trial stage lasting up to five months, and only a tiny fraction have been made permanent.

Also, a large percentage of modified loans end up in default again. Critics argue that the program was geared toward adjustable rate mortgages that had initial super-low teaser rates. These critics state that the big problem with new foreclosures is job loss and an increasing level of U.S. unemployment, which are the new causes of foreclosures and home loan delinquencies.

The Democrat-controlled branches of government have been obsessed with a government health care plan, and have ignored the famous political axiom "it's the economy stupid", during this country's deepest recession and tightest lending standards since the Great Depression.

But help is on the way. They're going to start focusing on the economy, I'm told, next year.

Fannie Mae's "First Look" Gives Owner-Occupants First Crack At Fannie Mae REOS.

By Troy Corman, todayshomedeals.com

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Fannie Mae has announced a new initiative which gives owner-occupant home buyers a head start on would-be investors. The program, called "First Look" prohibits investors from submitting contracts on Fannie Mae foreclosures (Fannie Mae REOS) the first 15 days they're put on the market for sale.

The First Look Initiative is aimed to help first-time and low-income home buyers who are interested in buying a home to live in. With the government tax refund extended to April 30 (must have a signed, executed contract for a home purchase by that date), and the outrageously low interest rates, starter homes in Dallas/Fort Worth should continue to sell briskly.

The First Look Initiative also allows longer closing periods, and lower earnest money deposits for owner-occupant home buyers. Hopefully, it will get some deserving families into some homes they can enjoy.