I was about the write the update and thought I'd throw in a mention about the Mortgage Credit Certificate now being offered in New York State. As I researched it, I realized how very important it is to get the news out quickly. The savings for first time homebuyers is huge!
The Certificate issued through SONYMA, as I understand it, pays 20% of the interest for the life of the loan. The example they give, which works well with the home I have open this Sunday, means that payments each month would be reduced by $182. The house is on the market for $214,900 - 117 Victory Lane in Country Creek, Town of Camillus. It was built in 2008, 3 bedrooms, 2.5 baths, high ceilings, hardwoods, TV over the gas fireplace included, lovely upgraded kitchen......
So, a first time homebuyer could receive the Federal tax credit of $8,000 if he/she/they close by November 30th (like 47 days from now). On top of that comes the MCC. Take out your calculator - $182 x 12 = $2,184 for the first year. Multiply that by 10 years and he/she/they have reduced their payments by over $20,000! Dang! (Since interest decreases, the $182 would be the high point...) And they say the life of the loan...but I'm not going out 30 years!
Now is the time to buy. If you are sitting on the fence or know anyone else, please bring this to his/her/their attention! It has not been at all well-publicized.
My client closed on a place on Friday. The house wasn't as expensive - think $130,000 - but he is getting the $8,000 tax credit and $100/month MCC. He came in just as this was beginning and may have been one of the first in the state to close.
Go to http://www.nyhomes.org for more information and to see where I got my numbers. They have a calculator for you to use to find out how much you could save. Remember, only 47 days....and come to the open house on Sunday, too, now that you see what the savings could be!