Tax Deductions
The cost of your mortgage loan interest from your Federal and State income taxes can be a good tax deduction. Because the interest portion of your payment generally accounts for the largest portion of the mortgage payment, especially during the first half of your mortgage term, the savings can be substantial. Some of your closing costs may also be taken as deductions, such as loan points paid up front at the time of closing. This should be further discussed with your tax professional.

Tax Deduction of Property Taxes
The property taxes paid on your home and deducible on your income taxes This should be further discussed with your tax professional.

Building Wealth through Appreciation Potential
Appreciation is never guaranteed, however, investing in real estate is considered a good long-term investment as properties generally appreciate in value.

Capital Gains Exclusion
This should be further discussed with your tax professional, however, when the time comes to sell your primary residence,
the amount of capital gains that you may have to pay should
be reduced.

Capital Gain Treatment
This is an important factor for homeowners who have a gain in excess of the allowable exclusion. Congress allows preferential tax treatment on gains from capital assets held for more than one year. This should be further discussed with your tax professional.

Principal Accumulation
Your mortgage payment is made up of both principle and interest, (unless you have an interest only loan product), which means that the principle part of each mortgage payment accumulates while your mortgage debt is retired over the period of your mortgage.

Pride of Ownership and Personal Enjoyment
“Home is where your heart is”, and there is no better feeing to have a place to call your own. You can personalize your property while enjoying the potential benefits of home ownership. For the best advice regarding your financial situation, it is strongly suggested that you consult with your financial advisor, legal or tax professional.

Selling or purchasing a home may have legal and/or tax implications, which should be discussed with your financial advisor and/or tax or legal professional prior to either selling or purchasing.

The above information is not intended to serve any legal or tax advice as each and every homeowner’s financial situation varies. This is intended to illustrate some of the potential benefits on home ownership.