We don't know all the details yet but the recently passed Stimulus Package looks to have three potential benefits for families thinking about buying or refinancing a home. I wanted to share how these items can have possible benefits for college planning:
As I learn more about ARRA 09, my team and I will look for ways to help college-bound families use the benefits to help pay for college!
- In 2008, the conforming loan limits were increased to $729,750. The American Recovery and Reinvestment Act of 2009 (ARRA 09) reinstates the $729,750 conforming loan limits until December 31, 2009. This means lower interest rates for loans up to this amount. Higher rates come with "jumbo loans" that exceed this amount. If your home still has equity, this could be a good thing to take advantage of lower interest rates for college planning!
- The 2009 bill will offer first-time home buyers a tax credit in the amount of $8,000 providing you purchase a home between January 1, 2009 to December 31, 2009. The credit does NOT have to be paid back to the government unless the buyers sell their home within 3 years after the date of close of escrow on the home. If you have the means, this could be a great time to help your student(s) buy their first home in lieu of a dorm.
- The American Recovery and Reinvestment Act of 2009 offers incentives to existing home owners for going Green. A tax credit of up to $1500 is given to home owners who make some “Green” home improvements. These Green home improvements include, but not limited to, energy efficient windows, doors, and furnaces. So doing something to save energy costs could help reduce taxes both of which can improve tax flow for college.
As I learn more about ARRA 09, my team and I will look for ways to help college-bound families use the benefits to help pay for college!
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