Springfield, IL Real Estate Blog: Stephen J. Klemm
Mortgage Credit Certificate Program PDF Print E-mail
Written by Steve Klemm   
Thursday, 19 March 2009 10:28
I wanted to write about a buyer program out there for first time home buyers or veterans to take advantage of.  I frequently attend seminars and classes on various topics and one this morning was for the Mortgage Credit Certificate Program.
 
What is it?  Well simply put, it's a tax credit in the amount of 20% of the mortgage interest paid.  The remaining 80% can still be deducted as the standard mortgage deduction.
 
I'll use an example to show how it can help you.  Say that your annual income is $40,000 and you are taking out a $100,000 loan at 5.00% for your home purchase.  Your total interest paid for the mortgage in the first year will be $4966.50.
So let's compare taking that entire $4,966.50 as an interest deduction or going the MCC route.

Without an MCC

With an MCC
Income

$40,000

$40,000
Mortgage Interest Deduction

$4,966.50

$3,973.20
Taxable Income

$35,033.50

$36,026.80
Taxes paid @ 15% bracket

$5,255.03

$5,404.02

MCC Tax Credit (20%)

$0.00

$993.30
Income Taxes Due

$5,255.03

$4,410.72
Tax Savings from MCC

$0.00

$844.31
 
This would save you $844.31 (either in taxes owed or as an additional refund) in the first year over just taking the entire $4,966.50 as a tax deduction!  And you can take advantage of it every year that you own the home.  Like the $8,000 tax credit, there are certain eligibility requirements.  Please contact me for more information about these requirements or the MCC in general.  It's a great program.
This e-mail address is being protected from spambots. You need JavaScript enabled to view it or (217) 341-5274
 
2.99% Construction Loan! PDF Print E-mail
Written by Steve Klemm   
Monday, 16 March 2009 10:40

For a limited time, there is a 2.99% Construction Loan being offered in Savannah Pointe.  Just another reason why it's a perfect time to build that new home.

For more information on this special financing offer, please contact Tim Holliday (217-698-4209) or Dana Dow (217-698-4248) at Town & Country Bank.  
 
Housing Tax Credit in the Stimulus Plan PDF Print E-mail
Written by Steve Klemm   
Thursday, 19 February 2009 11:09

This week, the largest Stimulus bill in our country's history was passed by Congress and signed by President Obama.  Chief among the many things contained in this legislation is a first-time home buyer tax credit (10% of purchase price up to $8,000) for qualified home purchases in 2009.

To summarize, the tax credit:

  • Only available to first time home buyers (those that have not owned a home in the last three years)
  • Does not have to be repaid (must stay in home minimum of 3 years)
  •  Is fully refundable
  • Will remain in effect until Dec. 1, 2009 so that buyers can utilize it during the critical summer and fall home-buying months
  • Allows tax credit home buyers to participate in the mortgage revenue bond program (in Illinois, this is referred to as the I-Loan program)
  • Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds


More information on the first-time home buyer tax credit can be found at www.federalhousingtaxcredit.com.
Last Updated on Thursday, 19 March 2009 12:49
 
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