One of the biggest incentives for home ownership can be the tax benefits.
A portion of the house payment you make every month is for the interest on the mortgage loan and the IRS considers this to be deductible, unless your loan is over $1 million.
You can also typically deduct any points you paid to take out the mortgage. One of the costs of a mortgage is a "loan origination fee." This is usually a percentage of the amount of the loan, expressed as "points." Points are deductible in the year they are paid, assuming you meet certain conditions.
In addition, your property taxes can also be a deduction. Many owners' monthly loan payments include their taxes, which go into an escrow account for payment once a year. If you have a home equity loan, this interest can also be tax deductible.
It should be understood, that based on your particulars, these itemized deductions may or may not be greater than the standard deductions that everyone can claim.
Of course, because tax rules are based on income and other factors, you should always consult with an accountant or financial advisor for your particular situation. If you need help finding a professional in our area, don't hesitate to give us a call.