If Johnny Isakson’s $15,000 Tax Credit for Every Home Buyer is Passed, I’m Buying a New House
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There is speculation that October will be a good month to buy a home. Mortgage interest rates are back below 5%, and people are having a fire lit under them by the prospect of the end of the first time home buyer tax credit. But will it really be the end? There are debates going on right now about extending the first time home buyer tax credit. There are two main proposals on the table right now:
- Six-month extension: This would extend the deadline for the first time home buyer tax credit to May of 2010, without changing much about the program. This is the plan favored by Senator Ben Cardin, and backed by Majority Leader Harry Reid.
- Year extension, and tax credit for every home buyer: Senator Johnny Isakson is ready to one-up the other plan. He proposes that the home buyer tax credit be extended to December 1, 2009, and available to everyone who buys a home. He also feels that the tax credit amount should be $15,000.
Clearly, both plans would cost money (though #2 would cost more). Even though #2 would be much more expensive than merely extending the deadline, it would open up another segment of the housing market, resulting in an increase in homes for those who are “moving up”. If they did decide to go with #2, I’d even consider selling and moving into a different house. Assuming they let the immediate use ability of the current tax credit to go through, it would mean at least $15,000 as a substantial down payment.
These extensions, though, also bring us close to another thought: Will a tax credit for buying a home become standard, like the tax credit for mortgage interest? That is a possibility, since taking away the credit might send the housing market back into a nosedive.
What do you think? Should the first time home buyer tax credit be extended?
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[...] Leave a Comment tweetcount_url=’http://www.bizzia.com/articles/buy-a-home-with-a-15000-tax-credit/’; tweetcount_title=’Buy a Home with a $15,000 Tax Credit?’;tweetcount_cnt=0;tweetcount_src=’RT @bizzia:’;tweetcount_via=false;tweetcount_background=”;tweetcount_border=”;tweetcount_text=”;tweetcount_api_key=’dcd0cbf084952aa806a7103c2609645942026abc5194e9819c425abe9a39da8d’;Right now, lawmakers are concerned about what happens when the first time home buyer tax credit expires. Many worry that the housing market will take another nosedive, since the first time home buyer tax credit has done a lot to help boost home sales since the beginning of the year. However, how the program should be extended is garnering a lot of talk. While some Senators merely want to extend the program, Johnny Isakson wants to extend it and expand it to include a $15,000 tax credit for every home buyer. [...]
[...] time home buyer tax credit, what will happen when it expires, and whether Congress will approve an extension of the home buyer tax credit program. But no matter what happens with the tax credit for home purchase — and whether or not you [...]
[...] is on plans that will extend the first time home buyer tax credit — and maybe even expand it to include all buyers, and not just first time home buyers. As expected, industry groups including the Mortgage Bankers [...]
[...] If Johnny Isakson?s $15,000 Tax Credit for Every Home Buyer is Passed, I?m Bu… Image via Wikipedia There is speculation that October will be a good month to buy a home. Mortgage interest rates are back below 5%, and people are having a fire lit under them by the prospect of the end of the first time home buyer tax credit. But will it really be the end? There are [...] [...]