Welcome to Tax Saving Guide
Mortgage Tax Savings Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
The Benefits of a Mortgage – Tax Savings
from:So often renters think they can’t afford to buy a house. And, it’s true that the idea of coming up with a down payment can be quite daunting, but here are some reasons why you should save your pennies and save a down payment on a home. Owning a home can save you money and make you money in ways you may never have imagined.
It’s not that much money – First of all, a down payment on your first home is not really that much money. At most, you’ll have to come up with 10% of the purchase price plus some money for closing costs. But, even this figure can be reduced. There are lots of special programs for first home buyers that can reduce your closing costs to nearly nothing and there are even home loans that require no down payment. Keep your credit squeaky clean – and once you’ve saved about 5% of your home budget, start looking around. It’s likely that your monthly mortgage payment will be no more than what you’re paying in rent.
Your mortgage tax savings – One of the biggest benefits of owning a home is your mortgage tax savings. You can deduct the interest you pay on your mortgage from your taxes each year. In the early years, especially, your mortgage tax savings are significant, because most of your mortgage payments are going to pay interest. As your mortgage matures, more of the money will go to principal, but even in later years, you’ll have some mortgage tax savings.
You’re building equity – In addition to your mortgage tax savings, each year that you own your home you’re building equity. By paying down the mortgage, you’re building cash equity. You can even borrow against this equity by taking out a home equity line to pay off other debt or make improvements to your home. And, the interest on home equity loans is tax deductible, too. So, paying off your other debts with your home equity loan makes great financial sense, because your interest rate is lower and you’re seeing tax savings.
You’re realizing the appreciation of the real estate market – Of course, you’re building equity by paying down your mortgage. However, in most cases, you’re building equity faster because of how quickly the real estate market is appreciating. Historically, the real estate market has been an excellent investment, often growing by 15% in a single year. So, owning a home is a great way to make money, too.
As you can see, there are many financial benefits to owning a home. Check out the first time buyer programs in your area and see how you can get into a home of your own.
Related Articles for Mortgage Tax Savings
Mortgage Tax Savings Specific Links
Connect at Current.com
- Stay current! All the Latest News and Videos: Entertainment, Politics, Sex, Tech, and Music. See whats new at Current.com.
-- http://www.current.com/
Watch Free Videos At Mevio!
- Tons of Free Videos, Only At Mevio.com
-- http://www.mevio.com/
Howie Mandel & The Talking Pine
- Howie Mandel tries to come up with a holiday campaign for Buy.com. Buy.com has millions of items at amazing prices, free shipping, video reviews, over 20 major categories of products.
-- http://www.youtube.com/
Free Tech and Gadget Reviews!
- Watch GeekBrief With Cali Lewis on Mevio!
-- http://www.geekbrief.mevio.com/
Free tech talk and news video!
- Watch Tech5 with John C. Dvorak now!
-- http://www.tech5top5.mevio.com/
Mortgage Tax Savings News
DARLING'S BUDGET PROVES HARD-LINE SOCIALISM IS BACK - Daily Express
ALL Budgets are confidence tricks. Beyond the detail of his financial tinkering, every Chancellor has to convey the sense that he knows what he is doing and is sure it will work. By far Alistair Darling’s most important task when delivering his ...
Read more...Ten ways to pay less tax - Manchester Evening News
AS the credit crunch continues to bite into our current and savings accounts, the last thing any of us wants to do is pay more tax than we should. On the average salary of £30,456, you pay around £4,884 in income tax and £2,750 in national ...
Read more...Savings Strategies - Wall Street Journal
The Game Plan takes a look at how some individuals and families are saving for retirement. You're invited to share your own retirement-savings plans by sending an email to reports@wsj.com . See the complete Your Money Matters report. The 35-year-old ...
Read more...New mortgage lending 'to shrink' - BBC News
His interim report, published in July, outlined a series of possible measures from which he has drawn his latest recommendations. The leading proposal is for the government to directly intervene with a "large injection of funding" into the banking ...
Read more...Discount Window - FoxBusiness.com
Many people know that the Federal Reserve sets interest rates in order to loan money to other banks so they can keep cash flowing throughout the U.S. financial system. Mostly, this works great for everyone involved. But, sometimes, banks and thrifts ...
Read more...