The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.

Assume:

$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

It’s never been a better time to purchase a home.  Low home prices and low interest rates.  At Realty World-Davis Homes & Properties we specialize in making the dream of owning a home become a reality.  If you’ve got any questions, we’ll have the answers.

With only weeks left to get your new purchase under contract before the deadline of the $8,000 and $6,500 tax credits end, time is of the essence.