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Renting?
Look at this!
First-Time
Homebuyers Information
Now
Uncle Sam will subsidize a portion of your monthly payment. Let's
explore the tax advantages of owning versus renting:
Tax
deductions you'll receive:
• Interest you pay on first and second mortgages up to $1 Million
is generally tax-deductible.
• Property taxes are deductible
• On a purchase, any points paid to reduce your interest rate are deductible
in the year they are paid
Let's
look at just how big a subsidy you could potentially receive if
you bought a $200,000 home with a $180,000 mortgage at 7%. The first
years' interest would be $12,542 and the property taxes would be
$2,500. Here's what you'll save:
Tax savings total: $4,211 or $350 per month. The total payment on
this $180,000 loan with principle and interest,
taxes and insurance included is $1,445. The effective payment
is only $1,095..
In
this example, Uncle Sam will subsidize $350 of your house payment.
At our Pre-Approval Consultation I will do a personalized Homebuyer
Tax Analysis™ for you.
How
can you not choose buying over renting with this kind of help? And,
this doesn't even take into account the fact that you are purchasing
an asset that historically has continuous appreciation.
Another
Great Tip
Many
people think that owning a home will only benefit them at the end
of the year via a refund on their taxes. Not so! If you would like
to realize the above subsidy benefit of $350 on a monthly basis,
you can. Just consult with your tax preparer/advisor to see how
much you should adjust your withholding exemptions so you take more
home from every paycheck. That way, you can realize the tax savings
immediately.
Your
Cherry Creek Mortgage Consultant can provide you with the figures
for your particular buying situation at your initial consultation.
He/she will also talk with you to determine if paying points makes
sense for you.
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