If you have a credit score of 580 or higher, you might be able to buy a home with no money down! Please call (303) 222-0027 or e-mail email@example.com for more info.
One of the benefits to owning your own home is that you get to deduct part of your monthly housing payment.
So, if you are comparing the cost of buying versus renting, you need to figure in your tax savings.
Here’s how it works…
Most monthly payments on first time home loans are comprised of the following:
Of these costs listed above, the interest on the loan and the property taxes are tax deductible.
As an example, if you were to buy a $200,000 in the Denver metro area, your property taxes could be $750 per year. And if you took out a $200,000 loan, at 4% interest, on a 30-year term, your interest payments in the first year would be $7,935.
That would mean that you could deduct $8,685. If you’re in a 25% tax category (with federal income tax and Colorado income tax combined), this would mean an annual tax savings of $2,171.
The scenario above is for illustrative purposes only. Check with your accountant for specific tax savings, as they apply to your situation.
If you don’t have a down payment saved up yet, don’t worry! You might qualify for one of the first time home buyers programs that are available in the Denver area. Give us a call, and we can put you in touch with a few mortgage brokers who offer home loans for first time buyers.
For more information about how we can help you buy your first home, please call (303) 222-0027, or e-mail firstname.lastname@example.org.
Note: If you are researching types of properties in the Denver metro area, contact us for a free consultation. We help buyers in all price ranges, throughout Denver and the suburbs. As experienced real estate agents, we’re an excellent resource for all of your home buying questions.