Lake Ridge Virginia Real Estate Help For Sellers and Buyers: The Caller Said "We're Getting Back $8300 From The IRS!"

It's Calls Like This That Can Make A Realtors Day!

Last night I received a call from one of our happy homeowners who purchased a home last summer.  She was estatic when she  completed her Turbo Tax entries for the 2008 tax year.

She said she just had to call me to share the news...."we're getting $8300 back from the IRS!" WOW!

Yes, you read that right. This couple was a first time buyer. They bought a end unit townhome locally her in Prince William County Virginia. While she had me on the phone she asked a few questions. She was wondering how she can take further advantage of this money. So I thought I would share this with other readers what her questions were:

Question #1. Should I use this to pay off my credit card debt?

Question #2. Should we consider a refinance?

Question #3. Should we just put in the bank as an emergency fund?

What to do ...what to do? 

So we talked for awhile on the phone. I explained it's yours to  spend. Refinancing the payment to a lower interest rate will certainly lower the monthly mortgage payment but not by much. The cost to do that may not be worth it in today's current market conditions. The rate you have now is low. However paying off the high interest credit card will give you a far better infusion of cash to your monthly budget immediately. As long as you don't run the credit card back up again. She said, I want to do all three options noted above. Pay off my credit and do the streamline refinance and save money. The loan officer said if I paid off my credit card and I rolled the closing costs into my loan, I could accomplish Question #1 and #2. And then I could begin to save for the Emergency Fund.

That is an option. I am not an accountant, I would advise you to talk to a professional and ask some pointed questions based on your particular financial situation.

If you are not familiar with First Time Buyer Tax Credit  and wonder how it works, well let me share with you it's a wonderful program designed to help home buyers.  In this case the buyer purchased a home in summer of 2008. Since they just claimed the tax credit on the 2008 tax return, in 2010 they will begin to pay back the government loan at a rate of $500 per year on yearly tax returns ,until the debt is satisfied.That would take 15 years. If you the homeowner decide to sell the property or transfer ownership prior to then, the remaining balance of the $7500 would be deducted from your profit (equity). If there is no equity, the debt will be forgiven. Read more 

For those of you who purchased  a home with an FHA Loan here is a snapshot of why it makes sense to consider an FHA Streamline Refinance.

Are you curious about the FHA Streamline Refinance Option? If you have a home and it's your principal residence, you can snag a lower rate when the rates drop! Call your current lender or the lender of your choice who handles FHA Loans. 

The First Time Buyer Credit Will End July 2009.

It you are thinking of buying a home...you still have time!

Call me today and let's get started

703-851-3085

What would you do with $7500 next year?

Contact Peggy James or Erick Blackwelder of Erick and Company of Exit 1st Choice Realty,14029 Crossing Way, Woodbridge VA 22192.VA. Realtors®, call 703-851-3085(Peggy) or 703-590-2252(Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Montclair, Dumfries, Occoquan, Dale City, Gainesville area's