got my $8k first home refund

**NJDebbie** · 05-29-2010, 05:10 AM

Firstable, congrats on your new home. I'd put that money aside just in case you have to do any major repairs to your house. Unexpected repairs can be a financial disaster if you don't have the money to make the repairs. Pay off the washer, dryer and the car as soon as you can. Plan ahead and establish a fund for everything you expect or want to do every year. The key to successful finances is to stay debt free.

**Charles@moneygreenlife.co** · 05-29-2010, 05:30 AM

Pay off your car. Not only will you save on not having to pay any more interest on the remaining balance, you'll also save on your car insurance. premiums go down when you own the car 100%. If you don't want to pay off your car, at least get gap coverage as part of your auto insurance. Use your new found money to pay off other debt, like credit cards. they're the worst kind of debt you can have.

**cptacek** · 05-29-2010, 01:56 PM

Are you going to get a roommate? Single with a new house...let someone else help pay the mortgage!

**investingnoob** · 05-29-2010, 02:53 PM

I am renting one room for $350/mo. + utilities.
My girlfriend is paying me $400/mo.
the other room is for her wardrobe lol.

**maat55** · 05-30-2010, 06:16 AM

Remember, that money comes with a 3 year string attached. I'd hold it until you are not obligated to the US government.

Q. If I claim the first-time homebuyer credit in 2009 and stop using the property as my main home before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it?

A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. See Form 5405 and its instructions about repayment of the credit. (5/6/09, 1/27/10)

First-Time Homebuyer Credit Questions and Answers: Basic Information

**jpg7n16** · 05-30-2010, 08:39 AM

Good catch maat^^

but even though I now know there's a 3 year string attached, I'd still pay off the car, and put the rest towards either the EF or the mortgage.

Then put the car payment into the EF until you're up to 6 months living expenses. Keep a higher EF than normal until the 3 years is up. Then back to normal.

**investingnoob** · 05-30-2010, 09:51 AM

Well I must pay my washer /dryer off or ill pay interest on them. 1600 for those.

Leaves me with 6400 to either pay my $5k car off or put the 6400 in ef.

**jpg7n16** · 05-30-2010, 01:40 PM

Originally posted by investingnoob View Post

Well I must pay my washer /dryer off or ill pay interest on them. 1600 for those.

Leaves me with 6400 to either pay my $5k car off or put the 6400 in ef.

oic - didn't read that to mean that the 1st time. Yeah def pay off the washer/dryer.

I find one of the better things to do when you've got two decisions you want to accomplish is just do 1/2. Nothing says you have to pay off the entire car, so put 1/2 towards the car and put the remainder into the EF. So something like:

Washer: $1600
Car: $3200
EF: $3200

or adjust those around. If you want both goals, you can do somewhere in the middle

And you'll be just fine

**investingnoob** · 05-31-2010, 03:02 PM

Yes I guess I could do that also, didn't even consider that, thanks!
I just don't want to completely blow it in case an emergency happens.

**FHA Loan** · 06-01-2010, 03:01 PM

I vote that you pay off the washer and dryer, pay off the car, and put the remaining money into your emergency fund. Then each month "pretend" you have a car payment. Pay that fake car payment money into your emergency fund until you have 6-9 months worth of living expenses saved up. At that point I would begin adding fake car payment money to my mortgage payment to pay down the principal faster.

**cypher1** · 06-16-2010, 01:53 PM

Originally posted by FHA Loan View Post

I vote that you pay off the washer and dryer, pay off the car, and put the remaining money into your emergency fund. Then each month "pretend" you have a car payment. Pay that fake car payment money into your emergency fund until you have 6-9 months worth of living expenses saved up. At that point I would begin adding fake car payment money to my mortgage payment to pay down the principal faster.

I agree with FHA Loan too. I just got my credit back too for a new house recently, put all but $1000 into my EF. The way I looked at it was, was 3 years can go by quick, but the Govt still hasn't let go of the money they gave you. Of that debt, pay off the appliances first at least. Just one less thing to manage. If you're like me, I re-invest my friends rent (only $400/month) into house maintenance/tools. Otherwise you could look at re-directing a % of that rent into paying off car a little quicker, if you're not already doing something like that already. Congrats though!

**project15** · 06-17-2010, 07:02 AM

I paid off my car with mine. It felt great!

got my $8k first home refund