NEW 2010 California Home Buyer Tax Credit

There is a small window to take advantage of both the federal tax credit and the newly signed California tax credit for a total of $18,000.

April 30th is the deadline for home buyers to take advantage of the federal tax credit. Escrow must be opened by this date and to close by June 30th for up to $6,500 to existing home buyers and $8,000 for first time home buyers. Income and other conditions apply, consult with your tax advisor.

In California, Governor Arnold Schwarzenegger just signed AB 183 for a state tax credit of the lesser of 5% of the purchase price or $10,000 in equal installments over three years.

$100 million is allocated for first time home buyers and $100 million is allocated towards purchasers of new or previously unoccupied homes. Last year's California tax credit program was so popular, it ended eight months before it was to expire.

Consultation with your tax accountant or tax attorney is highly recommended.

Underwater Mortgages: Bank of America to Cut Principal For Borrowers with Worst Loans - DailyFinance

Bank of America to offer a principal reduction program. Click on the link below.

Underwater Mortgages: Bank of America to Cut Principal For Borrowers with Worst Loans - DailyFinance

5 Ways to Keep Your Credit Score Up

The buyers with the highest credit scores will qualify for the lowest interest rates. If you are not in the market to purchase a car or home, or apply for a credit card, you will still want to watch and maintain your credit scores.

Employers look at credit reports to determine your dependability, insurance companies base your rate and monthly payments on the score, landlords select their applicants with relation to the credit scores, so it is in your best interest to make sure your numbers are at its highest. The following are five ways to keep your score up...

1. Pay your bills before the due date. Okay, this is a given.

2. Pay the minimum and add a few more dollars. This will add points when you do.

3. Don't accept approved credit invitation mailers just for the lower interest rate to use the balance transfer option. Balance transfers take up a lot of points. Credit reports will sometimes show two accounts open and the amounts show up twice. This eventually can straighten itself out but timing on the date of the credit report may be a factor for you.

4. Avoid multiple inquiries on your credit. For example... loan shopping, car shopping, furniture shopping, etc. I've seen my clients scores drop, even when it was all done close together.

5. Avoid being a signer on an account you do not own. If the account holder is doing a bad job with payments and credit limit, it also reflects on your scores. The balance of the account also adds to your debt when applying for a loan.

Since number 1 is an obvious one, here is number 6.
6. Do not close accounts where you have a zero balance. The available credit you have gives your points, but closing them will cost you points.

For common credit score myths go to Credit Information For You

You can also visit TRW Credit Group