Couple Money

Don’t Buy a House Just for the $8,000 Tax Credit!

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I have been a homeowner for less than a week and I'm already mad.

While we were looking at places to buy we were given much advice, some good, some benign, and some just plain bad.

Bad Home Buy Advice to Avoid

The bad advice was from people who weren't homeowners repeating things they've heard about buying like the amount of rent that you pay is the mortgage should aim for.

That's simply not true.

Besides your mortgage, there are several other expenses that you have to adjust your budget for that some people ignore.

If you’re looking at the above expenses and you're a bit hesitant, then continue renting and build your down payment.

Don’t buy a house and think that you can make it work somehow.

Have a specific financial game plan to be successful with your personal goals. Remember, though, that buying a house is not the end-all.

Don’t sacrifice other goals for this piece of property.

Buying a house is the biggest purchase most people make and yet many do it with money myths in mind. 

It seems there has been a huge chunk of the population that became homeowners for the wrong reasons.

Keeping the Mortgage Interest Deduction

I'm in the car and I'm upset because the conversation is really not making any sense.

Two friends are in a position to completely own the houses in a few years. The other person says ‘My financial advisor says never pay your mortgage off. You'd be giving up your tax break.”

NoNoNoNoNoNoNoNoNoNoNoNoNoNoNoNo!

First off, who is his financial advisor? I want to know because if he is repeating what that guy told him then that ‘advisor' is an idiot and is hurting his clients. 

Are you willing to spend a dollar just to get a ?

If so, please send me said and I will gladly send you back a quarter.

Taking the mortgage interest deduction while paying down your mortgage makes sense.

The problem is that when you delay paying off your mortgage just for the mortgage interest deduction, then you're paying so much more in interest payments to your mortgage company.

Get Some Free Money with the $8,000 Tax Credit/ $6,500 Tax Credit

Getting some ‘free' money in the form of the tax credit is another popular reason I've heard and read that people used to justify buying a house.

Going back to the list I had mentioned, you'll probably be spending much more than $8,000 just with your property taxes over the life of the loan. You really have to run the numbers yourself when you are house hunting.

Eligibility for the First-Time Homebuyer Credit for $8,000

There are some requirements you have to meet before you can get the First-Time Homebuyers credit.

Eligibility for the Existing Homebuyer Credit of $6,500

What If You Really Want to Buy a House?

Buying a house can be a great financial and personal goal to have.

You have basically some options to look at carefully before you make a final decision.

Thoughts on Home Buying Myths

What are some homebuying myths that you've heard?

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