Top 10 Reasons to Buy Now.

I came across a great article in The Wall Street Journal on some reasons to purchase a home now. Take a look and let me know what you think!
http://online.wsj.com/article/SB10001424052748703376504575492023471133674.html?mod=WSJ_RealEstate_LeftTopNews

Reasons to Live in Northern Colorado

Coldwell Banker has a weekly television show on Comcast Cable and this past week I had a short interview on why Fort Collins is such a great place to live. Please take the time to check it out and let me know what you think.

http://www.youtube.com/cbrbcolorado#p/a/u/1/idIRFqg1Y5c

Where are People Moving To? From?

Forbes.com has a great new interactive map published that shows where people are moving to and from for any County in the United States. If you are a real estate nerd like me, that is pretty cool. Check it out: http://www.forbes.com/2010/06/04/migration-moving-wealthy-interactive-counties-map.html?preload=08013.

Think Again Before Walking Away.

It seems to be getting more and more popular for homeowners to walk away from a house that they can still afford. People have reasoned as of late that if they are too upside down, they can just walk away. They realize that they will take a hit to their credit but that they can build it back up and purchase another home in a couple of years. Turns out, that is not the case. Banks still care if you have taken responsibility for what you agreed to do in the past. A homeowner who defaults on their mortgage because of economic hardship can sometimes qualify again in as little as two years.

"It could be well over seven or eight years before [walkaways] are able to obtain a mortgage to buy a home again," said Jay Brinkmann, chief economist for the Mortgage Bankers Association in an article for CNNMoney.com. "Credit scores are only one component of a complete credit decision," he said. "[In these cases] credit scores are not a good indicator of their willingness to continue to pay their mortgage."

These so-called "strategic defaulters" will most likely also be charged a higher interest rate than those who have not walked away even though credit scores might be similar.

Good Things Happening in Northern Colorado

Economic indicators are doing well in Northern Colorado. Fort Collins sales tax revenue incresed 27.8% year over year in April, while at the same time, building permits pulled in April totaled 28 in 2010 as opposed to just 12 in 2009. Unemployment also took a dip regionwide. Greeley unemployment dropped from 9.9% dowmn to 9% while Fort Collins/Loveland dropped from 7.1% down to 6.4%.

There is still a great tax credit out there!

Even though the government tax credit for purchasing a home has now expired, it is not too late to take advantage of another great tax credit program. It is called the Mortgage Credit Certification Program (MCC). This program allows buyers to claim up to 20% of the paid mortgage interest every year they live in the home and for the life of the loan! Here are some details:

- For the life of the loan, MCC holders may claim a dollar-for-dollar reduction of income tax liability equal to 20 percent of the paid mortgage interest on the first mortgage.

- The remaining 80 percent of the paid mortgage interest continues to qualify as an itemized tax deduction.

- MCC tax credit can be used with FHA, VA, USDA, Conventional, Home Path, CHFA programs.

Here is an example:
- $180,000 loan amount at 5% APR
- $9,000 of interest can be written off each year, this is a deduction through your taxes but not a direct credit.
- 20% of $9,000 is $1,800 that you can claim as a credit, and get that money back into your pocket!
- $1,800 per year for the LIFE OF THE LOAN! That is THOUSANDS of dollars!

Not every lender is capable of writing this kind of loan, but I work with one who can. Call me if you have any questions or want to try and take advantage of this program.

Fort Collins Econony Coming Back.

According to Moody's, the economy in Fort Collins is swinging back. The Coloradoan article states the reason is that our economy is supported by the region's largest employer - CSU - and a steady stream of college students, cutting-edge "green" companies and federal research dollars. Sales-tax collections are ticking up, residential and commercial construction is more than double the 2009 level, and new restaurants are opening. Moody's Economy.com classifies Fort Collins as one of about 200 metro areas nationwide in economic recovery. Moody's cites the city's skilled work force, relatively lower business costs and an emphasis on "innovation and budding solar energy."