While the prospect of having your own house can be exciting, the realistic truth is that unless you have enough cash to buy your house out of pocket, it won’t really be your home until you’ve paid off your mortgage in full with interest, which can take decades.
With this in mind, you may be wondering how expensive of a house you can afford. This may not be the best way of phrasing the question though. What you really want to know is how nice a house you can afford!
Part of the stimulus package of the home buyer' tax credit. This credit is intended to help home buyers with a credit to be applied on their taxes.
Example - If your normal tax refund check is $1,000 and you purchase a home, following the rules below your tax refund check will be $9,000. A tax deduction reduces a filer’s adjusted gross income. A tax credit is deducted from the amount of federal taxes owed by a taxpayer.
The homebuyer tax credit is part of the Housing and Economic Recovery Act of 2008-2010. It was created to encourage homebuyers to purchase homes despite a precarious economy and housing market.