How do you Build Wealth with Homeownership?
1. You Build Equity Every Month
Every month you make a mortgage payment, your equity increases!
2. You Reap these Mortgage Tax Deduction Benefits:
Mortgage deduction: The tax code allows homeowners to deduct the mortgage interest from their Some closing cost deductions: The first year you are able to claim the points on your loan, no matter whether they are paid by you or the seller. And because origination fees of 1 percent or more are common, the savings are considerable.
Property tax is deductible: Real estate property taxes paid on your primary residence and a vacation home are fully deductible for income tax purposes.
Tax Deductions on Home Equity Lines: You can deduct the lines of credit you pay on a home equity loan (or line of credit), allowing you to shift your credit card debts to your home equity loan, pay a lower interest rate and get a deduction on the interest!
4. You Get Capital Gains Exclusion:
If you buy a home to live in as your primary residence for more than two years then you will qualify. When you sell, you can keep profits up to $250,000 if you are single, or $500,000 if you are married, and not owe any capital gains taxes.
5. You create a life-time Savings Plan:
This is a no-brainer! Paying that mortgage every month and reducing the amount of your principal is like a forced savings plan.