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

Would you take out a 15-year loan -- even at zero percent -- to pay for those items?

"No, I wouldn't," she said. "I would save up the money."

Then Kiser said she thought about taking the credit and using it to pay down her current mortgage.

Think about it this way. Would you walk into a bank and take out a 15-year loan to pay down an affordable mortgage?

"No, definitely not," Kiser said.

Kiser then wondered how she might feel if she sold her home in the next several years.

Under the provisions of the law, if you sell the house before you pay off the loan, the entire amount becomes due. You pay back the loan from any profits of the sale. Upon reflection, Kiser didn't like the idea that she would be saddled with having to hand over a lump sum of equity under that condition.

"I never thought of the credit this way," Kiser said after my questions. "When you point out that this is debt, no matter how you slice it, and that you are responsible for that debt, I see it another way."

Kiser isn't going to take the credit. She doesn't need it.

· On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

· By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

· By e-mail:singletarym@washpost.com.

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