Think of Tax Credit as 15-Year Loan, And Rethink Whether You Need It

"Don't miss what could be the opportunity of a lifetime to get into the home of your dreams," the National Association of Home Builders trumpets on its Web site.

Of course builders love this loan.

"The nation's homebuilders are confident that a new temporary $7,500 tax credit for first-time home buyers . . . will get buyers back into the marketplace and help end the current cyclical downturn in the housing industry," the association said in a news release.

That's how an interest-free loan is often sold -- as if there is no downside to being in this type of debt. But this loan has to be repaid to the IRS. Fail to pay and you'll get hit with the same penalties and fees associated with any outstanding tax debt, according to IRS spokesman Eric Smith.

Sandy Dunn, president of the builders' association, said that as millions of first-time buyers enter the market and claim the credit, it will "stimulate buying up the housing ladder."

Um, excuse me, isn't that what helped get us into this housing crisis -- people buying homes they weren't ready for?

Many borrowers won't focus on the fact that this credit is really a long-term loan. And I doubt many builders will play up that fact, either.

But let's get back to Kiser.

She still was uncertain about taking this credit. So I asked her some questions.

If someone knocked on your door and said, "Hey, I have $7,500 to lend you at zero percent interest, and you can pay me back over 15 years," would you take the money?

"Probably not, unless I had something specifically I needed the money for," Kiser said.

Okay, so what if you do need a lawn mower or furniture?