Home Buyer Tax Credit Ends Tomorrow

The home buyer tax credit ends tomorrow. Many thought that the tax credit would be extended. Unfortunately, it was not. Home buyers have been rushing to beat the dead line in hopes of receiving a $8,000 tax credit. Some experts believe that home prices will drop without the tax credit. Additionally, rising mortgage rates may also negatively affect the housing market as well. In all, home prices are still relatively low compared to the last 5 years and mortgage rats are still at all times lows.

No Closing Cost Mortgage

Beware of the no closing cost mortgage. Mortgage companies are in business to make money. Mortgage professionals are not going to give something away for nothing. Keep an eye on your interest rate and points when opting for a no closing cost mortgage. Borrowers can expect to pay higher interest rates or points and potentially can pay more over time with this type of option. Compare other mortgage options to see which is the best scenario for your particular situation.

Mortgage Applications Rise

Mortgage applications rose by the most in the past seven weeks as the home buyer tax credit helped spark the biggest rise in purchases since January. Expect mortgage applications to fall once the tax credit ends.