Did You Miss Out On The Tax Credit? So What! Mortgage Rates Are To Good To Pass Up.

The first time home buyer tax credit ending in April brought a lot of buyers to the table before the credit ended. In the Cache County real estate market, the number of homes that sold in April of 2009 compared to April 2010 was 23% higher, and May is already showing an increase in sold's compared to last year with a week left to go. The credit boosted the market offering people money. 

If you missed out on the credit, give yourself a round of applause, because you may just be smarter then you think. Now that the tax credit rush is over, the market is likely going to slide into a stronger buyers market, and mortgage rates are plunging. As of today, May 25th 2010, you can get a 30 year fixed at 4.625% and a 15 year fixed at 4.375%. Those rates are 50 year lows. With the rates dropping and home values still declining, buying a home over the next couple months will save you more money then the $8,000 tax credit.

Let's do the math:

400k loan at 5% interest over the life of the loan at 30 years will cost you $31,000 more then a loan at 4.625% if you locked in today. The math is pretty simple, rates like these can save you big bucks, and now that the government is pulling out of the market, we can expect another decline in home values before they start to come up again. So, if you missed the credit, you can still take advantage of money saving mortgage rates and declining home values.