Two Ways to Save

Consider -- you can get a tax rebate of $8,000 from Uncle Sam by purchasing a home if you are a first time home buyer, OR if you already have a home with a mortgage consider refinancing. With interest rates as low as they have been in a long time, individuals with a home mortgage that still has several years to mature may benefit by refinancing. If you are in this situation, and you intend to continue living in the home you own now either indefinitely or for a few more years, it may pay to refinance. Of course there are administrative costs to be paid if you refinance. By calculating what these will be and dividing that by your current monthly payment you will get a "payback" number which means that it is the number of months required to break even. And, if that doesn't make sense to you then consider the purchase of a home that appeals to you and benefit from the tax credit. Last month 72% of the mortgages applied for across the country were for refinancing. Good luck!