On April 30, 2010, mortgage rates were 5.125%.  April 30 was the last day to write a contract and be eligible for the $8000 first time homebuyer tax credit offered by the IRS. Today, mortgage rates are 4.375%.

For Atlanta homebuyers who purchased after the tax credit expired, the difference in these rates, for a $300,000 loan, would be a savings of $135/month!  Over a 5-year period, today’s homebuyer would save $8,100 in interest payments, versus the homebuyer who received the tax credit, but closed on a higher interest rate.  

In effect, the market/banks are providing an amazing stimulus to the economy!

This entry was posted on Tuesday, August 3rd, 2010 at 7:39 pm and is filed under Atlanta neighborhoods, Atlanta Real Estate Investments, Mortgages, Tax Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.