One aspect of homeownership that is often overlooked is the tax advantage that is inherent for homeowners. With the current tax code we have all lost many of the deductions that we were able to claim several years ago. The one deduction that has remained is for real estate. By filing itemized deductions taxpayers can claim mortgage interest and real estate taxes.

The average national deduction for mortgage interest is $9,650.00 and the average deduction for real estate tax is $3,000.00. Examining this data and relating it to individual tax savings is important in establishing the effective monthly mortgage payment. If a homeowner is in a 28% tax bracket the effective savings would equate to $295.16 per month based on the national average figures. The calculation would look like this:

$9,650.00 + $3,000.00 = $12,650.00 x .28% = $3,542.00 Divide this by 12 months = $295.16

Homeownership has long been considered the "American Dream" and Five Star Mortgage is here to help you in aquiring that dream. The tax advantage of ownership is just another benefit for you.

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Georgia Residential Mortgage Licensee #14594


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