Is it Better to Pay Off a Debt or Buy a House? Ask a REALTOR®

Question My wife and I are looking forward to buying our first home this year. However, we go back and forth on one issue: our credit card debt is at about $15,000. Is it better to pay our debt off first and miss out on the $8,000 tax credit? Or, should we get approved and use the loan to pay off the debt and get in on the tax credit?
-Ray

Answer If you have a good FICO (credit score), loans are available with excellent interest rates along with the tax credit. You should check out the FHA loans with 3 percent down! It is absolutely the time to take advantage of this buyer’s market with historically low interest rates. I suggest that you pay down your credit card methodically after you’ve moved

Karen Crystal, REALTOR® at Ewing & Associates Sotheby’s International Realty, specializes in estate properties. She brings a unique blend of efficiency, honesty, integrity and business-savvy to her clients.

Nicki & Karen

Recent Posts

Family-Friendly Attractions in Agoura Hills [2025]

Agoura Hills, a charming city nestled in the eastern Conejo Valley between the Simi Hills…

2 days ago

Understanding California Rental Contracts: Key Points

Rental contracts, also known as lease agreements, are legally binding documents between a landlord and…

1 week ago

Beverly Hills vs Calabasas: A Lifestyle Comparison

Beverly Hills is an iconic city known worldwide for its glamorous lifestyle, luxury shopping, and…

2 weeks ago

Why Townhouses Are Smart Real Estate Investments

Before diving into the advantages, it's essential to understand what a townhouse is. A townhouse,…

3 weeks ago

How to Put a Lien on a Property: A Step-by-Step Guide

A lien is a legal claim or right that one party has over the property…

4 weeks ago

What Are The Costs of Home Staging?

When it comes to selling a home, first impressions are critical. Potential buyers often make…

1 month ago