Buying a Home and Saving Money on Interest and Taxes

When you buy a home, you can save money on interest and taxes, which makes the overall cost of owning your home really less.

First, probably the largest tax deduction you will have is the interest on your home's mortgage. You can save money on your taxes by deducting your interest. Get a great accountant or be skilled at doing the simple deduction yourself.

Secondly, to save money by not paying as much interest on your mortgage, you can choose among mortgage plans, and select one that will cost you less in interest. Consider a 10, 15 or 20 year plan instead of a 30 year. You will be paying more of the principal off each month than you would on a 30 year plan. You incur less interest on a shorter plan because you are paying down the principal faster, and the interest is based on the principal amount. You will have less interest to deduct on your taxes, of course, and will be saving on the front end by not paying as much interest to begin with.

Third, make a 13th payment, paying down only the principal, at the end of the year (before the next tax year begins) or whenever you wish - or pay a little bit each month or certain months towards the principal. Gain equity in your home faster. Save money in the long-run on interest because you are paying down the principal faster.

We hope this was helpful!

Getting it SOLD - for YOU!

Ken Courtade & Co

The Yes I Ken! Team