Time Your Closing Right To Save Thousands

Homeowners moving up to new digs could earn a new $6,500 tax credit -- but only if they finalize the deal after an expected new law goes into effect.

NOVEMBER 6 UPDATE: President Obama signed the legislation discussed in this story this morning, so the new credit for move-up buyers will be available for deals that are closed after today. Home buyers who qualify for the credit and are scheduled to close November 6 should consider postponing. The delay could put $6,500 in your pocket. Also, the higher income limits in the new law apply to first-time home buyers who close beginning November 7. That means some first-time buyers who thought they earned too much to get the credit will be pleasantly surprised by an $8,000 windfall.

It’s split-personality time in the housing market.

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Kevin McCormally
Chief Content Officer, Kiplinger Washington Editors
McCormally retired in 2018 after more than 40 years at Kiplinger. He joined Kiplinger in 1977 as a reporter specializing in taxes, retirement, credit and other personal finance issues. He is the author and editor of many books, helped develop and improve popular tax-preparation software programs, and has written and appeared in several educational videos. In 2005, he was named Editorial Director of The Kiplinger Washington Editors, responsible for overseeing all of our publications and Web site. At the time, Editor in Chief Knight Kiplinger called McCormally "the watchdog of editorial quality, integrity and fairness in all that we do." In 2015, Kevin was named Chief Content Officer and Senior Vice President.