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opinions requested: the irs wants to give me a $7,500 tax credit because I bought a new house last year. it looks like I will have to pay it back in

Posted by dogbert183 Feb 10 '09, 21:11

installments starting in two years.

here's what I'm wondering: I don't need the extra money for anything important. I would probably just put it towards my mortgage to try to get my equity closer to the 20% needed to get rid of my PMI payments. do I want to take this money which appears to be intrest free and worry later about paying it back, or just pass on it?

all opinions will be greatly appreciated. TIA

Responses:

I'm taking it and using it to pay off interest-carrying debt. - Cuzzin Todd Feb 10, 21:45
loan it to me so I can pay off my credit cards :) - Stacy Feb 10, 21:32
Take the money. :) -- nm - grammar Feb 10, 21:24
I would take it and get rid of the pmi. That could save you a lot in the short term. -- nm - David Feb 10, 21:18 1
- it wouldn't get me all the way there, but it would sure narrow the gap -- nm - dogbert183 Feb 10, 21:28
as WaPo's money guru Michelle Singletary says, don't think of it as a tax credit but as a 15-year loan from the IRS -- (link) - pigby Feb 10, 21:17 4
- and whether you even need it in the first place -- (link) - pigby Feb 10, 21:19 3
  - I'm guessing it's at a lower interest rate than his mortgage. -- nm - psilotum Feb 10, 21:24 2
    - extra debt at zero percent is still extra debt -- nm - pigby Feb 10, 21:26 1
      - excellent articles, thanks. I'll sleep on it a couple days, but knowing that it's intrest free over 15 years now it's got me interested (reason inside - dogbert183 Feb 10, 21:35

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opinions requested: the irs wants to give me a $7,500 tax credit because I bought a new house last year. it looks like I will have to pay it back in

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