With home ownership being so obtainable now, the question should not be centered on the price of buying a home, but the price of not buying a home now is the most relevant question for potential buyers. More and more consumers are taking full advantage of the opportunities that now exist for home buyers. How often has it been possible in the past to purchase a home and your monthly payments being less or comparable to the rents you would pay per month. That’s now very common throughout most parts of the United States.
The perfect storm is now in play for home buyers. The combination of the best mortgage rates in history, home values that have hit rock bottom plus the new-found pride of ownership makes buying a property today a top priority for consumers. This trifecta along with the increase in home values in most parts of the country have made buyers more anxious to purchase a home this year than in the recent past. There are other financial benefits with home ownership.
Everyone knows that owning a home is the American dream, but did you know that borrowing to pay for one is a taxpayer’s dream? Home mortgage interest is deductible on your income taxes if you itemize. You can deduct the interest on up to one million dollars of home mortgage debt, whether it is used to purchase a first or a second home. You can also deduct the interest on up to $100,000 of home equity debt, even if you don’t use the money for home improvements. Real estate taxes are deductible as well. With the availability of these tax deductions, you should consider whether borrowing on a home is right for you.
The other major deduction in connection with your home is property taxes.A big part of most monthly loan payments is taxes, which go into an escrow account for payment once a year. This amount should be included on the annual statement you get from your lender, along with your loan interest information. These taxes will be an annual deduction as long as you own your home.But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year’s tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned the home. Your share of these taxes is fully deductible. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home.