website accessibility
Select Page

Save Thousands On Interest and Taxes

Purchasing a home can save you money very quickly.

 

Woman working on computer drinking coffee.FIRST, you’ll save on taxes. Some or all of the your real estate taxes provide you a tax deduction. If you rent, you’ve lost that benefit.

SECONDLY, you’ll save on mortgage interest payments while also keeping the great real estate tax advantage.

Here is how that benefit works for the homeowner as opposed to the renter.  If you pay $2000 per month in rent,  a portion of your monthly rent will defray your landlord’s property taxes and mortgage loan interest. Any available tax deductions will accrue to your landlord who may be able to write off some or all these amounts. As a renter, you derive absolutely no tax break. Owning a home reduces your tax obligations as a result of mortgage interest payments and property taxes. Keep in mind that the portion of your mortgage payment applied to interest payments is always the highest during the early years of your loan, so your overall write-off is largest during these early years. For that reason you may want to explore the impact that differing types of loans might have on your tax obligations. It’s best to consult with your tax advisor and/or lender for professional recommendations.

None of these advantages are available to renters. Rent paid each month is simply gone.  But as a home owner, you can capitalize on any loan interest or tax write-offs, and gain net worth as the anticipated value of your home increases over time.

Should you have any questions, contact us. We are happy to help!