From economists and real estate agents to lenders and home builders, everyone agrees that the country is experiencing a "perfect storm" of buyer friendly market conditions.

Compare the first quarter of 2009 to the two-year housing boom of 2005-2006 and the contrast is clear. Today, home prices are much more affordable and interest rates are 1.0 to 1.5 percent lower. Just how much of a difference can that make to your pocketbook?

Let's say you purchased a median-priced home costing $221,900 in 2006, made a 10 percent downpayment, and financed the rest with a 6.5 percent mortgage. Your payments would be about $1,200 per month, not including property taxes and insurance. With today's lower price and interest rates, however, you could purchase a similar home for as little as $875 per month - a savings of $385. Five years from now, that cash savings would total an astounding $23,100.

Of course interest rates vary from week to week and from area to area, but this example illustrates the tremendous opportunity homebuyers have to profit from current market conditions.

But procrastinators beware! The nation's real estate pros also agree that those who wait will lose out on the best bargains, and may face rapidly growing home prices in some areas as the economy rebounds. Don't put off talking with your real estate agent and lender about the opportunities that are out there for you.

Although consumer understanding of credit scores has improved over the past year, it still remains poor. According to a recent survey commissioned by the Consumer Federation of America, this lack of knowledge can hit consumers where it hurts most-in their wallets. In fact, if all U.S. consumers raiser their credit scores by just 30 points, they could save $28 billion each year.

Just as importantly, confusion about credit scoring can jeopardize your ability to get a mortgage, a cell phone, insurance, or even a job.

To boost your financial IO, here are a few facts and fallacies about credit scoring:

• Credit scoring quantifies your ability to manage debt; Scores are not influenced by personal characteristics such as age, income, marital status, level of education or race.
  
  
• Making a monthly payment more than 30 days late will damage your credit score. Maxing out a credit card or opening several new accounts can do the same.
  
  
• Consumers with credit scores above 700 usually qualify for lower "prime" rates, while those with scores of at least 760 pay the lowers interest rates, Borrowers with a score below 600 are almost always charged higher "subprime"rates.

You can receive a free credit report each year from the three major credit agencies, which you can access at www.annualcreditreport.com

To obtain your credit score, however, you must pay a modest fee (starting at $15). To purchase your score, contact the Fair Isaac Company or one of three credit bureaus:

www.Equifax.com
www.Experian.com
www.transunion.com

If you have recently sold a home, calculating its cost basis may be important for federal income tax purposes. Though the 1997 Taxpayer Relief Act liberalized capital gains rules, it did not affect how your cost basis is calculated.

Begin with the purchase price of your home. Add the cost of any capital improvements that added value to your home, prolonged its useful life or gave it a new or different use. Add any special tax assessments you paid. Then add any amounts spent to restore property damaged by fire, flood, wind, etc., net of insurance reimbursements and deductions taken against income.

Now subtract settlement or closing costs (for both your initial purchase and subsequent home sale) which you have not previously deducted from taxable income (these do not include prepaid expenses such as real estate taxes, homeowner's insurance and prepaid interest). Subtract depreciation previously claimed for business use of your home. Finally, subtract payments received or credits for easements/rights-of-way, energy-related capital improvements, etc. The total is your adjusted cost basis. For additional information consult IRS publication 523 (Selling Your Home).