What do you mean by if you live in the home for 2 out of the previous 5 years All the gain is tax free?
The gain of profits from selling your house in a few years is free?
Also i dont understand how you achieved a savings of $904,337 as the mortgage you pay off over 30 years is about $100,000 on a $250,000 home.(that is just an estimate on a table I saw but dont know where it is)
That's right. If you live in it for 5 years, and 2 of those were in the previous 5, you pay no tax on the gain. See the IRS Rule.
To keep the tax credit, you have to live in for 3 out of the previous 5 years.
As for the payoff, the rent versus buy calculator shows that renting costs more since that moeny is a direct expense, it doesn't gain interest or go anywhere except to someone else. The tax savings from buying your own home decrease your costs. Roughly 1/4 of your house payment can be written off as an interest expense.
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