From mortgage points to PMI, unlock the essential info about how homeownership affects your tax burden.
Six Tax Benefits for New Homeowners
1. You can deduct the interest you pay on your mortgage.The home mortgage interest deduction is probably the best-known tax benefit for homeowners. This deduction allows you to deduct all the interest you pay toward your home mortgage with a few exceptions, including these big ones:
- Your mortgage can’t be more than $1 million.
- Your mortgage must be secured by your home (unsecured loans don’t count).
- Your mortgage must be on a qualified home, meaning your main or second home (vacation homes count too).