Posts Tagged ‘mortgage lenders’
The deadline for the First Time Home Buyers $8,000 tax credit is looming, which has many people scrambling to buy a home quickly to cash in on their free money. Realtors, mortgage lenders, the federal government and lots of other people believe the tax credit incentive has helped stimulate the housing market.
Some Realtors even believe it has caused a trickle-up effect to take place. With up to $8,000 of free money from the federal government, home buyers that once could not afford to buy a home are now in a position to make the move. Many of these individuals and families are buying some of the lower-priced properties (under $200,000).
This, in turn, is pushing up the existing homeowners of the $200,000 and under properties into higher-priced homes of more than $200,000. The intention of the $8,000 credit was to stimulate the housing market. To bring the real estate market back on track. So far, the results seem positive. Not only are Realtors selling homes to first-time buyers, but they are also attracting the sellers of these properties to upgrade into larger and more expensive homes. Instead of the trickle-down effect, many call the phenomenon the trickle-up effect.
Those doing the best in this market are the folks who’ve been using their homes to pay for their homes. Yes. Using the equity in their home to pay off their mortgage principal. The result? They can buy more real estate, always a good investment when entered into correctly. Watch a video presentation of how to pay off your home years sooner.