We Love Tax Credits

Click here to get details of new Tax Credit

Suffice it to say that I love Tax Credits. Similar to the way that I like donuts, pizza and peanut M&Ms. They are oh so tasty right now and honestly who cares about the lifetime that they spend as a spare tire around my belly.

These tax credits are great for home buyers now but may have negative results on the economy as a whole in the future.

Since I am not an economist I am not going to go there and I am simply going to say, "enjoy it while you've got it."

Now lets take a moment and talk about my recommendations (do's and don'ts) for buyers that get it.

Do start a Rainy Day Fund. Lets face it, most first time home buyers are broke after down payment and closing costs. Repay yourself and stick that whole thing in the bank.

Do pay off consumer debt. If this doesn't get the whole thing then pay off what you can and apply those monthly payments to the others until all are gone (Snow ball).

Don't use it to pay down your mortgage UNLESS you are debt free (except mortgage) and already have a rainy day fund. Then make sure your lender will RE-AMORTIZE (lower) your payment. This give you cash flow flexibility in the future but DO continue to pay the same amount so you can pay off early.

Don't buy toy's, TVs, designer clothes or other non necessities

Do contribute to your IRA or other retirement plan IF you are free from consumer debt and have a rainy day fund.

Do payback that relative you borrowed $8,000 from to make a down payment. Shame on you, you should have saved that yourself so that you could now have a rainy day fund. Too late now.

Do use it to buy furniture if you need it but don't fool yourself into thinking that you need everything leather and new. Don't worry, your furniture store has been going out of business for 6 years. Those sales aren't really that great. Hit up craigslist and score some deals so that you can start that thing I mentioned earlier A RAINY DAY FUND.

I could go on but won't. You're about to get a bunch of free money. Don't be an idiot! Don't do something that you will regret in the future. Be smart with it and it could change you life. We live amongst a generation of spenders. Who do you think will REALLY have money to spend in the future..... those who are SAVERS today.

What to Expect from this blog

Let's set some expectations for this blog. You are going to get great information about what is going on in the mortgage world. I will be constantly giving tips, tricks, breaking news and just some old fashion fun.

This blog will be riddled with video. I will be posting a series of "instructional" videos that explain anything from loan products to tax credits, buying points to first time buyer grants, and of course interest rates and how they work.

Feel free to follow this blog and share it with your friends.