Fed Keeps Bank Rates Near Zero: Use our Loan Calculator to Calculate Refinance Savings

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Calculators for Mortgages Columnist

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On June 24, 2009, the Fed announced that it is keeping bank rates near zero, continuing the trend of historically low rates.  The statement showed signs of hope, saying that while the economy is still weak, “the pace of economic contraction is slowing.” This is outstanding news if you are in the market for a new home loan or have not yet joined the millions in refinancing your home loans to take advantage of these historically rates. The federal funds rate has stayed between 0% and 0.25% since December ‘08, resulting in the lowest mortgage rates we have seen in over 50 years, and this recent action is likely to extend these historically low rates at least in the short term.

First-Time Home Buyers Get $8,000!

With prices plummeting, it's a buyers' market.  And if you are a first-time home buyer (have not owned a home for 3 years) you can take advantage of an $8,000 tax credit to buy your home.
 
Highlights of First Time Home Buyer Tax Credit:

• The tax credit doesn't have to be repaid
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
  

Also if you live in California, you qualify for an especially generous $10,000 tax credit – and that’s for all homebuyers, not just first time homebuyers! So if you are in the market to refinance or get a new home or equity loan, now may be the time since these record low rates won’t last forever.   A low rate may save you thousands over the course of your loan.  Act now to find a lender and get free expert advice in your area!



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