Tuesday, June 2, 2015

Buying VS Renting: Which Type Of Financial Benefits Do Homebuyers Get That Renters Don't? Part 3.

Buying VS Renting: Part 3 of Series.
Discount Points Deduction

I am guessing most people don't know about discount point(s) and how they work. What, exactly, is a discount point and why should you even consider it?

A Discount Point(s) can be used to lower the interest rate on your home loan.   

Generally speaking, each point costs 1% of the loan amount, so if you have a $200,000 mortgage and purchase one discount point for $2,000 (1% of loan amount), you’d get a one-time $500 tax savings assuming you’re in the 25% tax bracket ($2,000 x 0.25 = $500).

If you plan on holding the property for 5+ years and want to lower your mortgage interest rate, consider paying point(s).

Pt. 1 Mortgage Interest Tax Deduction Article May 6, 2015.

Pt. 2. Property Tax Deduction Article May 18, 2015.

Pt. 4. Mortgage Insurance Deduction.

Pt. 5. Going "Green" Deduction..

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