If you’re in the market for a new house or recently unemployed, some good news hit home this week. The Senate voted Wednesday on measures to extend the first-time home buyers tax credit as well as unemployment benefits; the bill passed by a vote of 98 to 0. On Thursday, the House of Representative passed the bill by a vote of 403-12. The bills are now making their way to President Barack Obama to sign. President Obama has made it very clear that he WILL sign them into law. So how does this work for you?

Not Just a First-Time Home Buyers Tax Credit

So do you want to buy a house but you’re not ready to buy one this year? If so, I have some good news! According to Fox Business the Senate voted unanimously Wednesday to extend the $8000 first-time home buyer’s tax credit.  The current tax credit will be extended to April 30, 2010. This means that you as a first-time buyer can take advantage of the credit as long as you have a contract in place by April 30, 2010 and close on the mortgage before July 1, 2010.

Have you owned a house for at least five years out of the past eight years and are looking to move into something bigger? If so, I have good news for you too! In addition to the extension of the original credit, the Senate has also introduced a new home buyer’s tax credit for those who already own a home and are looking to move. Those who have owned a home for at least five years out of the past eight years would also be eligible for a tax credit of $6500 if they move.

The tax credit for first-time home buyers currently allows first-time home buyers to claim a tax credit equal to 10 percent of the home’s purchase price up to the maximum of $8,000. The credit, which is set to expire on November 30, 2009, has allowed the housing market to come back from its recent fall. Many bankers, financial analysts, and realtors feel that the housing market could decline once more if the tax credit is not extended. Many have spoken and the Senate listened. However, the Senate has assured consumers that the tax credit will NOT be extended beyond April 30, 2010.

In addition to introduction of the new tax credit, the Senate has also raised the maximum income earnings that qualify an individual for the tax credit. Currently any single buyer who earns over $75,000 or a couple who earns over $150,000 a year is not eligible for the current credit. However, under the new law, a single buyer can earn up to $125,000 and a couple up to $225,000 a year and still be eligible for the tax credit.

When you’re ready to purchase a house, check out Quizzle to calculate how much home you can afford.

Unemployment Benefits Don’t Have to End Now

Currently unemployment stands at 9.8% and is expected to rise another .10% when the latest figures are released November 6, 2009.  Even though some analysts feel that the economy is slowly rising, many of those unemployed still can’t find work. If your unemployment benefits are coming to an end there is no need to worry, as your benefits will be extended up to an additional 20 weeks.

The Senate has passed a bill that will extend unemployment benefits for an additional 20 weeks in states that have an unemployment rate of 8.5% or higher, while all other states will receive a 14 week extension. To see how many weeks you may qualify for check out the Bureau of Labor Statistics.

Here at Quizzle we want to keep you posted with the latest news. Check back often to find out the latest scoop on the two major economic bills.

Hi! My name is Angela and I am the Web Project Manager intern here at Quizzle.

This next year is going to be a big one for me. Not only do I graduate from college, but I am also hoping to buy a house in June and am getting married in October.

In addition to saving for the wedding, my fiancé and I have begun to save for a down payment on our first house. We would like to put down at least 10% (~$10,000). In saving for such a big purchase, we’ve learned a few things that work and a few that don’t. Here are our six best tips for saving money for a down payment:

1. Check your credit report

The first step to buying a house is to understand what other expenses you will incur in addition to the down payment, for example, closing costs.

Check your credit report (you can get a free credit report at Quizzle.com) when you first decide that you are ready for a house, as well as periodically throughout the process.

Get an understanding of what is on your credit report and make a list of the items, if any, that must be taken care of to ensure you will be approved for a home loan. Knowing what items are on your credit report ahead of time can help you manage your money,  know what debt you need to pay off and ultimately, save for that down payment.

2. Know your income schedule

Check which weeks of the month have more bills than others so you know when you are able to put money aside for the down payment. Some weeks of the month may not have any bills allowing you to set aside an entire week’s pay.  If you get paid on a weekly basis, keep in mind that some months will have 5 paychecks as opposed to 4 paychecks. In these months you can set aside that entire paycheck as most budgets are based on 4 paychecks a month.

3. Create a budget and set goals

Creating a budget will show you how much money you have coming in on a monthly basis compared to how much money you are spending on debt and living expenses. You can create a simple budget using free personal budgeting software from sites like Quizzle.com.

Once your budget is created, look for areas in which you can cut down expenses. For example, my credit cards add an extra $500 to my expenses each month simply because I am carrying balances on them.  If I can spend a few months paying off those balances, in the long run I can save $500 a month. Imagine what kind of house you can afford if you have an extra $500 each month for a monthly payment!

Set new goals each month to eliminate certain expenses so you have room in your budget to save for your down payment and later on for our home loan payment. I’ve found that it helps to make a game out of it to see how many expenses I can eliminate each month.

4. Only carry cash

I know it’s sometimes tough to make time to stop at the ATM to get cash, but include it on your way to other errands such as getting gas. If you happen to use your bank card, use it as a debit card and get cash back when you are making other purchases.

By only carrying cash you are less inclined to use your credit cards, allowing you to pay down your debt even faster because you’re not constantly adding to your balance. Set a weekly budget amount – I like to call it my “Miscellaneous Fund” – and take out that much from the ATM each week.  If you budget yourself, say, $40 each week and only carry the $40 and no credit/debit cards, you will be more likely to stick within those limits. Any money that I have left over, I add it into the next week’s miscellaneous fund. Some weeks you might have enough money for extras, like going out for dinner.

5. Avoid going out for lunch and dinner

Even though it is really tempting to go out for lunch, it can become costly. Consider this: If you eat out each day at work, 5 days a week, you may be spending an average of $50 a week just on lunch! By simply bringing your lunch, you might only spend $10 each week.

Buy items in bulk such as snacks and water that will last you the entire month. If you always have that urge to eat out, then make it a once a week thing. Treat yourself to a Monday “get the week going” lunch or a Friday “we made it through the week” lunch. This lunch should come out of your miscellaneous fund that I talked about above.

I know that some restaurants are just too good to give up. I love eating out myself and some days I just don’t feel like cooking. But by eating out for dinner, you are more than likely to spend more than you’ve budgeted.  What you think might be a $25 dinner, will turn into a $40 dinner after an appetizer and dessert.

By eating dinner at home, the average household can save about $400 per month. If you must eat out then nix an appetizer, order water because it’s FREE, and eat dessert at home.

6. Cut out late night shopping trips

I’ll admit that when I am bored I love to go shopping. It’s probably one of my worst habits. By simply not going to the store unless you need too and skipping the mall all together, you’re less inclined to spend your hard earned dollars. If there is something that you must have, take a look at the budget and see what can be eliminated to help you make your purchase. See shopping as a reward if you eliminate something from your budget; reward yourself for meeting your ultimate goal.

Bonus Tip:

7. Use one bank account

If you are living with your significant other or married, you may want to consider using only one bank account. I have always said that I would never combine my money with my partner, however it just makes sense to do so. My fiancé and I only use one bank account; he has his paychecks direct deposited into my account and we pay all of the bills from my account. Because he is limited to spending what money I give him and I am less inclined to spend money that isn’t really mine, we have seen our money grow faster together than it would have separately. By using one account, it is easier to pay your bills and keep track of your budget.

Budgeting for a down payment isn’t that easy. I know there are times when you must spend that $30 to get your oil changed or $25 on a birthday present; those are occasional purchases. Even if you occasionally spend money you can still watch your bank account grow with the tips listed. I personally don’t see a reason to budget everything I buy, just as long as I keep those occasional purchases to… “occasional.”

Keep in mind these are just 6 tips of many that I have for budgeting and saving. There are a lot of other ways to save money, whether it be for a down payment on a home or some other goal. The key is to always remember your end goal. If you constantly remind yourself of what you are trying to accomplish, you will save money faster than you ever have before.

This has been THE year for first-time home buyers to take advantage of the housing market and buy that first home.  Anyone who did (and met the guidelines) got to take advantage of an $8,000 check from the government as a tax credit!

Right now, this tax credit is only available if you get your closing in by November 30, 2009, but hopefully a new bill proposed by Sen. Johnny Isakson and Sen. Chris Dodd will not only expand the deadline, but could also expand the tax credit amount from $8,000 to $15,000!

There’s lots of support for the bill from the National Association of Realtors and the National Association of Home Builders, but Treasury Secretary Timothy Geithner said Thursday that he hasn’t “made judgment yet” on extending the credit.

Check out this Mortgage News article for more info.

There’s no date when the new bill will be decided on, but we’ll keep our ears open for it!

Yes, death and taxes are often uttered in the same breath, but tax time doesn’t have to be all bad news! As a homeowner, you may be eligible for more tax breaks than you know. We’ve assembled some tips to help you get the most tax perks from homeownership, and keep as much money as the law allows! So watch this video from our friends at Quicken Loans to get the best tax tips for homeowners. Enjoy!

LOOKING FOR A HOME? It may be your lucky day!

Check out this graph.  Look at all the factors…

Affordability way high….mortgage rates way low… amazing selection of homes available… prices way down… AND DRUM ROLL PLEASE …….

If you’re a first time home buyer, a $7,500.00 repayable tax credit may be available …

What does this graph mean?  The graph shows an index where 100 means a family has just enough money to qualify for a mortgage.  A number over 100 means that family has more than enough to qualify.  Note that we are at affordability levels not seen since the early 90’s when a monster refi boom was taking place AND….AND…this data is only thru October.  When the ridiculously low current mortgage rates and even lower property values are input, the index should be off the charts!