Forward Bank

While renting a home gives you the freedom of picking up stakes and moving whenever you want, realizing the dream of home ownership can give you far more benefits, the most obvious being the growth of your nest egg coming from normal market appreciation and the additional equity increase that you gain from making home improvements over time.

Home ownership can also enhance your financial status with some of the following tax advantages.

1. Mortgage Payments

Making monthly principal and interest payments on your loan may qualify you for a mortgage interest deduction, which reduces your income tax liability proportionately.

2. Property Taxes

Owning your own home means paying property taxes and, with some limitations, may give you an additional tax deduction on your income taxes.

3. Mortgage Insurance Premium

If your loan includes a mortgage insurance premium and your income qualifies, that premium is deductible and also lowers your tax liability.

4. Home Improvement Expenses

A percentage of some home improvements can increase your tax deductions, especially if they are eco-friendly. Solar panels and wind turbines are examples.

5. Home Business

Having a home-based business and the improvements that are associated with that business may also contribute to decreasing your tax liability. The square footage percentage of the portion of your home where you conduct business may give you additional tax deductions.

If you feel that owning your own home will benefit your financial future, then our team of Mortgage Lenders are here to take you down that path.