In 2014, 11 million renters were spending at least half of their income on housing, according to Harvard’s Joint Center for Housing Studies. Another 21.3 million (over 50 percent of renters) were spending 30 percent or more of their income on rent payments. So in an era where rent costs are going up, up, up, how do you decide whether buying a home or continuing to pay the landlord’s mortgage is the right financial choice for you? Here are several things you should factor in when considering the buying vs. renting scenario.
From personalizing your living space to creating a stable family living environment, there are several personal benefits of owning your own home. On the financial side, tax benefits are one of the biggest perks of homeownership. See how homeowners come out ahead during tax season.
One of the most common first-time homebuyer questions is how much can I afford to buy? Home affordability weighs on many factors that your lender will analyze to give you an appropriate, pre-approved purchase point.
Understanding the elements of your mortgage payment is as easy as remembering four letters – P, I, T, I. The mortgage industry uses the acronym PITI, which stands for principal, interest, taxes and insurance, to break down the components of homeowners’ mortgage payments.
A greater sense of community, more living space, more stability for your children; the benefits of homeownership are endless. In honor of National Homeownership Month, we’ve compiled some of the biggest financial perks of accomplishing a significant part of the American Dream.
From creating a stable living environment for your family to personalizing your living space and building home equity, there is no doubt homeownership boasts several advantages. In honor of Tax Day, we’ve compiled some of the biggest (tax) perks of being a homeowner.
To rent or to buy? That is the (important) question. And it should be – choosing to buy a home is most likely the biggest financial decision of your lifetime. Choosing between a home purchase and a rental is also a highly personal decision, but here’s what we know on the financial side.
The perks of homeownership are evident year-round, but when it comes to tax season, benefits really increase for homeowners. Here’s how owning your own home helps reduce your tax bill.
Understanding your mortgage payment is as easy as remembering four letters – P, I, T & I. The mortgage industry uses the acronym PITI, which stands for principal, interest, taxes and insurance, to break down the components of homeowners’ mortgage payments.
There is no doubt homeownership boasts several advantages. Owning your own home allows you to create a stable living environment for your family, personalize your living space and build equity. With tax season around the corner, homeowners can argue that the tax benefits are one of the biggest perks of owning their own property.
When looking at an amortization schedule of your mortgage, the majority of your first years’ payments are towards interest, not principal. The benefit is that you can deduct that interest the year that it is paid, within certain limits. Homeowners can deduct up to $1 million in interest payments for a first or second home.
According to Realtor.com®, Americans save around $100 million every year by deducting mortgage interest on their tax returns.
Homeowners who pay points, or origination fees, on their home purchase or refinance can also deduct those points on their tax returns. A one percent fee on a $100,000 loan equals one point, or $1,000. Taxpayers can deduct the entirety of points in the year they were paid on a purchase. For refinance loans, points must be deducted as an amortization over the period of the loan.