From at least one lender I know. Pretty amazing.

VA/FHA rates, as of 1/10/09

4.75% w/ 1 ½ points

5.00% with ½ point

(C) 2009 Susan Pruden.

I'm not a big fan of Suze Orman - her style leaves me cold - but she's conservative on money, which is a good thing.

Her new book, Suze Orman's 2009 Action Plan, is available as a free download through Oprah Winfrey's site until January 15, 2009. It's $9.99 on Amazon .com. I haven't even looked at it yet, but for free, I'd be silly not to download it.

As the hype surrounding the book says, 2009 is the year you can't afford to make any mistakes with your money. I can't think of any argument with that! So download the book before January 15th and get crackin' on your 2009 Action Plan for your money!

(C) 2009 Susan Pruden.

I've had several people ask me about the First Time Buyer Credit that was signed into law recently.

Here's the scoop. If you're a first time buyer, it's a great time to take advantage of this and of the really good interest rates that we're seeing right now.  Lenders say they're seeing an uptick in refinances.

(C) Susan Pruden.

The Washington Post reported this morning that President Bush will sign the huge housing legislation package, despite his opposition to parts of it.

These points stood out when I read the article:

Buyers and therefore sellers could benefit: "First-time homebuyers who purchase a house by July 2009 would be eligible for a tax credit worth up to $7,500, though the credit would eventually have to be repaid to the Treasury. And homeowners who do not currently itemize would be able to claim a new property tax deduction of $500 for individuals and $1,000 for families."

Communities could benefit: "The package contains aid to communities to purchase vacant and foreclosed properties, a provision Democrats say would help stabilize urban neighborhoods hit hard by the mortgage crisis but which the administration argues would primarily benefit lenders who foreclosed on the properties."

Distressed Homeowners could benefit: "The package includes a plan to rescue more than 400,000 homeowners at risk of foreclosure by helping them trade high-cost loans with rapidly rising payments for more affordable mortgages backed by the Federal Housing Administration. The FHA, as well as Fannie Mae and Freddie Mac, would be given permanent authority to assist borrowers with much larger home loans, as the bill would increase the cap on the size of those loans from $417,000 to $625,000."

The second point, about aiding communities in stabilizing urban neighborhoods had a particular impact since I had just listed to Bill Moyer's Journal on PBS about the Mortgage Meltdown (transcript, video and audio available). This episode opened my eyes wider than they already were to the immense impact  of foreclosures on entire neighborhoods.

Most neighborhoods that I sell in have their share of foreclosures and pre-foreclosures, but none have been impacted like the ones described in Bill Moyer's Journal. We are fairly well insulated here in the Washington DC area. It could be so much worse. Give Mortgage Meltdown a listen. It'll make you mad, but it's stuff we have to know or we can't fix it.

I hope this legislation makes a difference, and soon.

(C) 2008 Susan Pruden.