Tax Benefit of Owning a Home

The most common concern I hear from potential First Time Homebuyers is the amount needed for a down payment.  The notion of needing a 20% down payment is no longer true.  There are many loan programs available that allow you to put down as little as 0%, 3.5%, or 5% with affordable monthly payments. Also, a portion of your monthly payment is tax deductible.

Let’s use an example sales price of a $385,000 home with a 10% down payment.  This gives you a monthly payment, including Taxes and Insurance, of $1,900.   Taxes and Interest are deductible from your income, which comes to $5,200 refunded each year. Or, $430 a month.  Applying this refund, your $1,900 a month mortgage payment is equivalent to a $1,470 a month rental.  Not to mention the appreciative value of owning a home.   With rent increasing every year, buying a home makes more sense.

If you have specific questions or would like general financing information, send me an email (patrick@mccormickmortgageservices.com) or give me a call (301-704-2333)!

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