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March 2, 2013
Tax Advantages to Buying a New Home
Tax Advantages to Buying a New Home

Buying a home is the best investment - 3/2/13

There are many advantages to building a new home, but did you know that there are also tax advantages?  Here are 4 Homeowner Tax benefits that you may be able to take advantage of: (consult your tax professional for details) 

1. Mortgage Interest Deduction (MID) is the largest & the best tax break for homeowners. This tax break can save new home buyers a lot of money! 

2. Mortgage Insurance Premiums Homeowners with new mortgages may be able to deduct the private mortgage insurance (PMI) on their loan as well, so ask your tax professional! 

3. Mortgage Loan Points Most people obtain a loan to buy a home and most pay “points”.  These points are just charges or fees paid by a borrower to obtain a home mortgage.  If you have your first mortgage, you can deduct these charges in the year that you paid them if the loan is for your primary residence. 

4. Property Taxes Another tax advantage is you can deduct state and local property taxes.  If you pay your property taxes out-of-pocket, you need to locate your bills to determine how much you paid. Most homeowners pay through an escrow account; if you do the same, the information also appears on Form 1098.

Have questions? Our preferred mortgage lender, TowneFirst Mortgage, is more than happy to answer any questions you have about the financial benefits of building a new home with CraftMaster Homes.