[eagleeye]

I think I’m going to give my contractor a little more breathing room and hold off a bit on locking. I don’t want to get greedy though. We began this process in late 2007 when we found out the property where we are now building would be coming on the market. We then had to sit patiently on the sideline until the asking price dropped to the point where we eventually purchased it at over 28% off the initial list price. We never thought we’d be looking at interest rates at these levels. In fact, we were worried about the prospect of quite the opposite. By the time we closed on our construction loan in October it seemed likely that our interest rate which is tied to the prime was unlikely to rise anytime soon. Our adjustable rate is prime + 1% but there is a floor of 6%. These are crazy times we are living in.

[eagleeye]

I think I’m going to give my contractor a little more breathing room and hold off a bit on locking. I don’t want to get greedy though. We began this process in late 2007 when we found out the property where we are now building would be coming on the market. We then had to sit patiently on the sideline until the asking price dropped to the point where we eventually purchased it at over 28% off the initial list price. We never thought we’d be looking at interest rates at these levels. In fact, we were worried about the prospect of quite the opposite. By the time we closed on our construction loan in October it seemed likely that our interest rate which is tied to the prime was unlikely to rise anytime soon. Our adjustable rate is prime + 1% but there is a floor of 6%. These are crazy times we are living in.

[eagleeye]

I think I’m going to give my contractor a little more breathing room and hold off a bit on locking. I don’t want to get greedy though. We began this process in late 2007 when we found out the property where we are now building would be coming on the market. We then had to sit patiently on the sideline until the asking price dropped to the point where we eventually purchased it at over 28% off the initial list price. We never thought we’d be looking at interest rates at these levels. In fact, we were worried about the prospect of quite the opposite. By the time we closed on our construction loan in October it seemed likely that our interest rate which is tied to the prime was unlikely to rise anytime soon. Our adjustable rate is prime + 1% but there is a floor of 6%. These are crazy times we are living in.

[eagleeye]

I think I’m going to give my contractor a little more breathing room and hold off a bit on locking. I don’t want to get greedy though. We began this process in late 2007 when we found out the property where we are now building would be coming on the market. We then had to sit patiently on the sideline until the asking price dropped to the point where we eventually purchased it at over 28% off the initial list price. We never thought we’d be looking at interest rates at these levels. In fact, we were worried about the prospect of quite the opposite. By the time we closed on our construction loan in October it seemed likely that our interest rate which is tied to the prime was unlikely to rise anytime soon. Our adjustable rate is prime + 1% but there is a floor of 6%. These are crazy times we are living in.

[eagleeye]

I think I’m going to give my contractor a little more breathing room and hold off a bit on locking. I don’t want to get greedy though. We began this process in late 2007 when we found out the property where we are now building would be coming on the market. We then had to sit patiently on the sideline until the asking price dropped to the point where we eventually purchased it at over 28% off the initial list price. We never thought we’d be looking at interest rates at these levels. In fact, we were worried about the prospect of quite the opposite. By the time we closed on our construction loan in October it seemed likely that our interest rate which is tied to the prime was unlikely to rise anytime soon. Our adjustable rate is prime + 1% but there is a floor of 6%. These are crazy times we are living in.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

[quote=ariffe22]nobody should count their chickens before they hatch here, but it appears as the bill is written it applies to purchases after 12/31/08. In addition it appears that you need to put at least 5% down on the home to be eligible for the credit and the home must be a “principal residence”. There are recapture provisions if it does not meet the principal residence test within the first 36 months.
Then again, this has not passed the joint congressional committee and obtained the President’s signature. Congress says they will be done with this by President’s Day 2/16. We will see.
[/quote]

Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[eagleeye]

[quote=ariffe22]nobody should count their chickens before they hatch here, but it appears as the bill is written it applies to purchases after 12/31/08. In addition it appears that you need to put at least 5% down on the home to be eligible for the credit and the home must be a “principal residence”. There are recapture provisions if it does not meet the principal residence test within the first 36 months.
Then again, this has not passed the joint congressional committee and obtained the President’s signature. Congress says they will be done with this by President’s Day 2/16. We will see.
[/quote]

Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[eagleeye]

[quote=ariffe22]nobody should count their chickens before they hatch here, but it appears as the bill is written it applies to purchases after 12/31/08. In addition it appears that you need to put at least 5% down on the home to be eligible for the credit and the home must be a “principal residence”. There are recapture provisions if it does not meet the principal residence test within the first 36 months.
Then again, this has not passed the joint congressional committee and obtained the President’s signature. Congress says they will be done with this by President’s Day 2/16. We will see.
[/quote]

Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[eagleeye]

[quote=ariffe22]nobody should count their chickens before they hatch here, but it appears as the bill is written it applies to purchases after 12/31/08. In addition it appears that you need to put at least 5% down on the home to be eligible for the credit and the home must be a “principal residence”. There are recapture provisions if it does not meet the principal residence test within the first 36 months.
Then again, this has not passed the joint congressional committee and obtained the President’s signature. Congress says they will be done with this by President’s Day 2/16. We will see.
[/quote]

Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[eagleeye]

[quote=ariffe22]nobody should count their chickens before they hatch here, but it appears as the bill is written it applies to purchases after 12/31/08. In addition it appears that you need to put at least 5% down on the home to be eligible for the credit and the home must be a “principal residence”. There are recapture provisions if it does not meet the principal residence test within the first 36 months.
Then again, this has not passed the joint congressional committee and obtained the President’s signature. Congress says they will be done with this by President’s Day 2/16. We will see.
[/quote]

Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

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