It looks like the real estate market is beginning to repair its foundation. New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.

With all this activity, there are plenty of real estate estate concerns you may be wrestling with. For instance, if you're still on the fence, where can you find out more about the terms of the homebuyer tax credit? If you're considering a move and you have children, you're likely researching school districts, too. There are some good resources to turn to compare districts, taxes and student-teacher ratios.

And then there's the common question about when it makes sense to pay off a mortgage rather than continuing to make payments. AP personal finance writers tackle those questions in this installment of "Your Money." If you have a question you want answered, e-mail it to yourmoney(at)ap.org.

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Q: What's the best way to find out about first-time homebuyer programs that offer financial assistance?

A: A good place to start is the Web site of the U.S. Department of Housing and Urban Development. It has a variety of useful information for homeowners as well as a link by states of its housing counseling agencies that can provide advice on purchasing a home and brief you on homebuyer programs: www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.

A reminder to move fairly quickly if you want to take advantage of the federal break for first-time homebuyers. Under that program, included in the economic stimulus plan, those who haven't owned a home for at least three years are eligible for a tax credit of 10 percent of the value of the home, up to $8,000, if they purchase a home by Dec. 1.

Besides the federal tax credit, a number of state housing finance agencies offer related or additional programs. Colorado, Delaware, Idaho, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Tennessee and Washington were the first states to offer bridge loans of the $8,000 tax credit for a down payment. The list has been growing — check the Web site of the National Council of State Housing Agencies' Web site at www.ncsha.org/section.cfm/3/34/2920 for details.

Numerous local government and nonprofit programs also may be available, depending on location. The National Association of Realtors advises checking with a realtor to learn about available resources in a given area.

— Dave Carpenter

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Q: If I'm looking for a home in a good school district, what's the best resource for current information?

A: There are many resources available to research school districts you may be considering. It depends largely on whether you're focusing on the level of taxes you'll pay on you new home — and that can vary widely from one district to another — or whether you're looking at the quality of the school and its programs.

One resource to consider is www.greatschools.net a Web site that allows you to do your own research. It offers a tool that will help you compare districts. The site will rate school districts based on standardized test results and give you a brief profile of the district, listing median household incomes, home prices, cost of living, unemployment rates and violent crime rates.

There also are tips for how to research schools and compare them with helpful advice like a checklist of things to look for when visiting a prospective school.

You may also want to check out some of the tools and searchable data at the National Center for Education Statistics at nces.ed.gov where you can find data on states or even a school district mapping tool, which allows you to drill down to find population and housing details including median housing values, for example. It also gives you teacher numbers, school district revenue and other financial data for comparison purposes.

— David Pitt

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Q: When does it make sense to pay off a mortgage, rather than continuing to make monthly payments?

A: The first consideration is whether you truly have enough to pay off your mortgage. Try to anticipate scenarios where you might want that cash, such as for college, a new car or other big ticket purchases.

Beyond that, you would evaluate it like any other investment decision. How would you put the money to work if you didn't pay off your mortgage? Would that alternative reap a greater return?

One advantage of paying off your mortgage is that you know exactly how much you'll be saving — the interest rate on the loan after taxes. Investing in the stock market could very well be more lucrative, but it doesn't come with any guarantees. Your earnings would depend in large part on how long you invest the money and the market conditions in that period.

"That's why it's not a slam dunk. It depends on the economic situation," said Steven Weinstein, president and chief investment officer for Altair Advisers, an investment consultant in Chicago.

If you have a 30-year mortgage at a fixed interest rate of 5 percent, for instance, you'd be saving 5 percent on the money by paying it off. Based on historical trends, you would likely earn more than that by investing in the stock market over 30 years. But the prospects get dicier over shorter time spans.

— Candice Choi
   
Copyright 2009 The Associated Press.