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Oh no! I'm in debt again...


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Closed on a house yesterday. We move on Friday.

BK 7 in March 2004...current scores in the 640-680 range, but we got a loan and we're finally getting out of the apartment.

Mutliplied our outstanding debt about 20 times. Ouch...

(And, BTW, thanks to FirstSource for his encouragement. We weren't able to use his services as a broker (local girl gets all the business), but he gave us the courage to give it a try).

We'll be shutting down the computers on Thursday night...depending on how the new cable modem goes in, we may be offline for awhile.

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Congrats. And don't be too hard on "being in debt" over a house. That's good debt. You're gonna have a boat-load of tax write-offs that practically assure upping your paycheck deductions....and likely a refund each year to boot.

Between the deductions on my two houses I pay no income taxes, federally or state. What little they do take out of my check gets rebated every year.

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Since the IRS takes our refund every year to pay back taxes, I'm wondering how they're going to react to that. I've already upped my deductions to 6 which will essentially zero out what we owed last year. I'm thinking about taking it to 10 or 12, but I'll have to run the numbers to see if that works with just 3 months of house payments. We' just die the standard deductions last year...I don't think the extra, what, maybe $2000 in interest will change that for 2007.

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I don't think the extra, what, maybe $2000 in interest will change that for 2007.

It's not just interest. If the property taxes are paid in arrears, YOU get to deduct them, not the previous owner (check your closing docs for taxes prepaid). You also get to write off any points paid on the loan and any PMI paid at closing and through the year. Designating a room in the house as a home office also means some of your principal and utilities get written off as home office expense too.

BTW max withholding deductions is 10.

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You're right, Iowa's okay. Job is alright (nobody bothers me, for the most part). Little town here is friendly. Things are comfortable at the moment. (Now, if I can just keep the DW from redecorating the heck out of my paycheck, we'll be fine for a few more years).

lol..women just "love,love,love" a house till the day after closing. then it's " when are we gonna start fixing this dump up?"

we closed on a brand new house last dec. dw is "personalizing" a bedroom at this very moment by painting walls, etc.:neutral:

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Since the IRS takes our refund every year to pay back taxes, I'm wondering how they're going to react to that. I've already upped my deductions to 6 which will essentially zero out what we owed last year. I'm thinking about taking it to 10 or 12, but I'll have to run the numbers to see if that works with just 3 months of house payments. We' just die the standard deductions last year...I don't think the extra, what, maybe $2000 in interest will change that for 2007.

Do forget medical on top of interest deduction. ;)

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Completely awesome! - Massive congrats :)

I have to agree with Methuss that none of us should be too hard on ourselves for being in debt especially over an investment such as a home .. it's very true debt is a scary thing for some of us, (it is for me) its taken some time but I've become used to it and I give the glory to Christ that we've made good choices and can afford to pay our bills each month.

Now, when are we celebrating? I'll bring the steaks. ;)

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Awww, willing, it does my heart good to see your fortune turning around. So many of us remember when you were go through that very rough patch, having to leave Ohio (yep, still think of ya when I drive through Toledo several times a month), and all that. Your story gives encouragement to all who are going through their rough patch now. Good for you and DW!

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