July 07 2020

Start the Mortgage Process Early & Reduce Stress

Just because your home is not finished being built, doesn’t mean you should leave the mortgage process for the last minute.

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June 30 2020

10 Space Saving Tips For Your Home

Make the most of your square footage and make your home feel larger with these space saving tips.

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June 23 2020

What is a Jumbo Loan?

A Jumbo loan is a home loan for those who have higher lending needs than conforming conventional loan types can meet.

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June 09 2020

8 Things to Know About Your Home

Check out our money saving tips and tricks to maintaining a happy home and wallet!

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June 04 2020

DIY Summer Crafts for Kids

Looking for some activities to keep the kids busy this summer? Here are some DIY summer craft ideas!

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May 28 2020

Tips to Organize Your Laundry Room

Solve laundry room clutter with our 4 easy tips on organizing your laundry room.

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May 18 2020

What is a Conventional Loan?

Deciding to obtain a mortgage comes with a lot of new words to learn! Here's a quick summary of one of the most popular loan...

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May 11 2020

4 Signs It's Time for You to Move Up

Spending more time at home may have shown you that you need more space! Here are our tips on knowing when it's time to move...

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May 04 2020

Planning the Perfect Staycation

Cancelling your summer vacation? You can keep your family safe & healthy while still unplugging and escaping reality for a...

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Financial IQ February 06 2020

Tax Incentives for Homeowners*

The dream of homeownership comes with many financial incentives. These financial perks extend beyond the more obvious such as building equity and investing in your future, to the size of your tax return each year. Tax season is fast-approaching, so we thought it was a good time to cover the plethora of tax benefits related to owning a home!

Home Mortgage Interest Deduction

Homeowners who itemize deductions may reduce their taxable income by deducting the interest paid on their home mortgage. Homeowners are eligible to deduct interest paid on "qualified residence," defined as a taxpayer's main home or second home by the IRS. This interest can be deducted on loans up to $750,000. ($350,000 for a married homeowner filing a separate return)

Property Taxes Deduction

Deducting state and local property taxes is a major benefit to owning a home. Your state and local governments assess property taxes annually, based on the value of a property.  Property taxes paid at the state and local level are eligible for a $10,000 deduction, or $5,000 for married taxpayers filing separately. 

Mortgage Interest Credit

Lower-income homeowners who meet certain qualifications may qualify for a mortgage interest credit. This means by obtaining a mortgage credit certificate from your local government, you might be eligible to claim a portion of the mortgage interest you pay as a credit. This benefit only applies to new mortgages used for a taxpayer’s primary residence and the government entity must be contacted about obtaining an MCC prior to a borrower taking out a mortgage.

Mortgage Insurance Deduction

Should you secure a conventional loan and have a down payment that is less than 20% of the home’s purchase price, you may be required to pay for private mortgage insurance. 

The good news? PMI will be tax deductible through the end of the year. While this bill expired in 2017, an extension was placed through December 31st, 2020, meaning you can benefit if you already own a home. You may even qualify for filing an amended 2018 tax return!

There is a plethora of benefits to owning a home, but the above are some you may consider when filing your taxes for the April deadline. Get prequalified for a loan now to start taking advantage of these tax breaks for homeowners!

Sources:
IRS
U.S. News
Tax Policy Center

*Consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.

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