NEW info on How to buy a house

Who is Eligible

• First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. 
• Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit. 
• All U.S. citizens who file taxes are eligible to participate in the program. 

Income Limits

• Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.  
• For married couples filing a joint return, the combined income limit is $225,000. 
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.  
• The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. 

Effective Dates

• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.  

 Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.   

 Tax Credit is Refundable

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference. 
• For example:  
  • A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time home buyer tax credit).  
  • A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). 
• All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return. 

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

Send your credit card company a message

WHY ARE CREDIT CARD COMPANIES RAISING YOUR RATE?








If you have questions call us we can help 770-792-7979











A growing number of our newsletter readers' e-mails to are asking the same question lately: Should I opt out of this rate hike? Credit cardholders given the chance to avoid an imminent rate increase face a number of options, each with pros and cons.





No federal law or regulation requires issuers to offer cardholders a chance to reject a rate re-pricing, or opt out, according to Chi Chi Wu, a staff attorney for the National Consumer Law Center in Boston. BUT Issuers may still present an opt-out in the name of goodwill or to comply with state law. THEY usually will, but not always, opting out involves closing the account. The cardholder can't use the card going forward but gets to pay it off at the old rate and under the existing terms. WE HIGHLY SUGGEST CLOSING THE ACCOUNT TO SEND THE CREDIT CARD COMPANIES A MESSAGE!





Your best course of action depends on your situation. Here are some scenarios.





Paying off the debt





If you can wipe out the outstanding debt before the rate increase applies, this is the best move for your wallet and credit score. You will pay no additional interest charges and your score won't suffer from an account closure. To keep the card active after the higher rate takes effect, use the card once a quarter to purchase something inexpensive and pay the balance off.





Balance transfers





If the amount is too large to pay off and the rate increase is worthy of avoidance, see if you can do a balance transfer to another card. This leaves the original account open and paid off, which will help your credit score as you attack the balance on the new card. Scott Bilker, creator of DebtSmart.com, says he'd first look to his existing cards for balance transfer deals, then consider new cards if his didn't offer any good rates.





It may prove tough for some to qualify for a better interest rate. For rates below 8 percent, you need a stellar credit score. "I'd say north of 720," says Curtis Arnold, founder of CardRatings.com and author of "How You can Profit from Credit Cards."





There's also usually a cost involved with balance transfers. Balance transfer fees are typically 3 percent of the balance, but increasingly issuers are charging 5 percent of the balance with no cap on the fee, says Greg McBride, senior financial analyst at Bankrate.com.





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Use the work sheet below to plug in the costs. Note both the teaser balance transfer rate and the regular APR following its expiration.





If the math plays out in favor of a balance transfer, make sure not to charge new purchases until that balance transfer debt is paid off. Issuers will usually apply payments to lower-rate balances first to maximize profit.





First, gather some information on your old card. Dig out your most recent bill and a copy of the current agreement with the old credit card, plus the agreement with the new card company.













Old card Info



Toll-free customer service number (8___)_____-_______



Account # __________________



Balance $__________



APR ____ %



Grace period ____ days



Due Date ___/___/______











New card Info



Toll-free customer service number (8___)_____-_______



Account # __________________



Balance $__________



Introductory APR ___ %



Date intro rate expires ___/___/______



Date balance transfer APR expires ___/___/______



Fees for balance transfer $__________



Annual fee $__________



Grace period ____ days



Due Date ___/___/______







Print out the form now.



Now that you have the necessary information, you're ready to make the transfer.



Follow these steps in order, checking them off one at a time.







Credit card account close-out procedure











Send minimum payment to old company by due date.



Sign up for new card.



Complete balance transfer form.



While balance is pending, continue to make minimum payments by due date to old card.



Receive notice of balance transfer to new company.



Call old company to verify balance transfer.



Receive billing statement with zero balance from old card company.



Close old account by calling or writing the issuer. Ask the issuer to note in any statement to a credit bureau that the account was closed at the customer's request.