Should Rentors buy a Home in Albuquerque Now

Hi, this is Carol Skees of REMAX Elite in Albuquerque, New Mexico, and today I would like to talk about a announcement I received from David Ehrlich of Nations Home Funding

Other than tax deductibility of interest and property taxes and no capital gains tax* on sale, there are a couple of factors that make January and February a good time for someone who is currently renting but thinking about becoming a homeowner to get off the fence and just do it.

The first is that there is a reasonable, but not an extreme, number of resale and new homes available on the market in the price range that is most attractive for people that are currently renting. Inventory is dropping, but we are not approaching the lack of inventory that we saw a couple of years ago. There is a good selection of homes is almost all areas.

Second, and probably the most important for Rentors is that Freddie Mac has announced that they will begin charging additional fees on March 1, 2008 for loans that have downpayments of less than 30% and credit scores under 680. The position many, if not most, people are in. Now, come on, what rentor buying a $200,000 house has $60,000 laying around waiting to put down? …. or would want to tie up that much money in their house? Plus 680 is a good credit score, especially for someone who hasn’t purchased a home before, or maybe hasn’t had a long credit history.

After March 1, 2008 paying more points at closing, or to pay an higher interest rate on your loan that is between one half and three quarters higher will be your only option. So if you are thinking about moving out of your rental unit and purchasing a home, townhome or condo, now is the time to do it.

If you would like an analysis of the tax savings, mortgage payments, monthly investment amount and your overall housing expenses under different levels of appreciation in the Albuquerque housing market, please call me ,Carol Skees of REMAX Elite, at 505-350-0911.

*see tax attorney for limits/rules