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

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