hornyleprechaun

http://www.federalhousingtaxcredit.com/

Just heard about this from a friend. Reading about it I gathered it is a 15 year Interest free loan essentially. If I owe $5,000 in taxes to the government I take the credit, and will be refunded the additional $2,500.

Right now I have a $192,000 1st loan @ 6% & a $36,000 2nd loan @ 7.25%

I'm pretty sure I will be owed money by the government for 2008 taxes, so I'd get the full $7,500 tax credit. I'd put this into a money market account or ING account and use it to make my monthly payments toward my 2nd loan to pay it off.

Worth it? Opinions?

Jonesi

Yes depending on when the first $500 comes out on taxes. $500 a year for 15 years so you might get refunded $2,000 instead of $2,500.

I'll be using the credit when I purchase a home this year.
Supposedly another part of the bill is better rates for 1st time home owners.

hornyleprechaun

I think you have to pay a minimum of $500 the 2nd year. So if I apply it to my 2008 tax return, which I am, then I will have to pay $500 in 2010.