The popular first-time and repeat homebuyer tax credit created a boost in the number of new home sales while homeowners were still able to qualify for this credit but with the expiration date having long past, many are considering the benefits of a new first-time homebuyer tax credit offer. Obviously, home sales dropped when the tax credit expired and, despite the fact that mortgage interest rates are quite low, home sales are not where many would expect.
Yet, there are arguments that a new homebuyer tax credit may be only of minimal assistance to new homebuyers. Many individuals who used the first-time homebuyer and repeat homebuyer tax credit did so because they were able to, essentially, regain a large part of or entirety of their closing costs. Homeowners stated that the tax credit helped them with these costs, which would have been unaffordable for some without the credit.
However, there are those who would argue that since mortgage interest rates are quite low at the present time and home prices are very affordable, first-time homebuyers may still stand to benefit from entering the housing right now. Obviously, the benefit of receiving a tax credit which could make closing costs less straining is not currently offered but there are those who feel that mortgage rates can make home loan payments affordable to a point that the additional costs at closing may be offset by the low monthly mortgage payment many may gain.
While a new homebuyer tax credit is said to be strictly speculation at the present time, there are potential homebuyers who would love to see a resurrection of this first-time or repeat homebuyer credit. Understandably, homebuyers would love to take advantage of low mortgage interest rates and potential home loan costs, as well as, claim a new tax credit so that their closing costs would be made more affordable.