Impact of the Stimulus Bill and Treasury Announcements on Homeowners
Posted by RealEstate_Guru
Charles McMillan, the President of the National Association of Realtors, released the following statement: “So here’s what we have achieved:The loan limits will be raised to $727,000 in high cost areas.The tax credit will be raised to $8,000 with NO payback [a true credit].
Interest rates have come down 125-150 basis points.
The bill has over $50 billion in it for foreclosure mitigation.
With Geitner’s Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES’s thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.
In addition, we preserved what we have – which some tend to forget is always on the table when these negotiations start up again – mortgage interest deductability, real estate tax deductability, and the $250,000/$500,000 cap gains exclusion (an overall package worth more than $100 billion and for some a very attractive funding source for their pet projects).”
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