Thinking about buying a home? One of the biggest tax benefits of homeownership is the mortgage interest deduction—but how much can it actually save you? Let’s break it down with a real-world example.
Example: Mortgage Interest Deduction for Year 3
- Home Price: $500,000
- Loan Amount: $400,000 (Assuming 20% down payment)
- Interest Rate: 6% (Fixed)
- Year in Loan: 3rd Year
- Total Interest Paid (Year 3): ~$22,000
If you itemize your deductions, you can deduct that $22,000 from your taxable income!
Thinking about buying a home? Understanding tax benefits can help you plan ahead! Send us a DM or reach out if you have questions.
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This is for informational purposes only and is not tax or financial advice. Always consult a tax professional for personalized guidance.
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