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Tax Savings For Average Peole Article
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The Benefits of a Mortgage – Tax Savings
from:So often renters think they can’t afford to buy a house. And, it’s true that the idea of coming up with a down payment can be quite daunting, but here are some reasons why you should save your pennies and save a down payment on a home. Owning a home can save you money and make you money in ways you may never have imagined.
It’s not that much money – First of all, a down payment on your first home is not really that much money. At most, you’ll have to come up with 10% of the purchase price plus some money for closing costs. But, even this figure can be reduced. There are lots of special programs for first home buyers that can reduce your closing costs to nearly nothing and there are even home loans that require no down payment. Keep your credit squeaky clean – and once you’ve saved about 5% of your home budget, start looking around. It’s likely that your monthly mortgage payment will be no more than what you’re paying in rent.
Your mortgage tax savings – One of the biggest benefits of owning a home is your mortgage tax savings. You can deduct the interest you pay on your mortgage from your taxes each year. In the early years, especially, your mortgage tax savings are significant, because most of your mortgage payments are going to pay interest. As your mortgage matures, more of the money will go to principal, but even in later years, you’ll have some mortgage tax savings.
You’re building equity – In addition to your mortgage tax savings, each year that you own your home you’re building equity. By paying down the mortgage, you’re building cash equity. You can even borrow against this equity by taking out a home equity line to pay off other debt or make improvements to your home. And, the interest on home equity loans is tax deductible, too. So, paying off your other debts with your home equity loan makes great financial sense, because your interest rate is lower and you’re seeing tax savings.
You’re realizing the appreciation of the real estate market – Of course, you’re building equity by paying down your mortgage. However, in most cases, you’re building equity faster because of how quickly the real estate market is appreciating. Historically, the real estate market has been an excellent investment, often growing by 15% in a single year. So, owning a home is a great way to make money, too.
As you can see, there are many financial benefits to owning a home. Check out the first time buyer programs in your area and see how you can get into a home of your own.
Tax Savings For Average Peole News
Peter Orszag clarifies "rift" with Obama admin over Bush tax cuts - Washington Post (blog)
 ABC News | Peter Orszag clarifies "rift" with Obama admin over Bush tax cuts Washington Post (blog) I will also note that most folks with savings will still characterize themselves as living "paycheck to paycheck"--keeping certain savings near sacrosanct ... Wonkbook: Stimulus reax; Mitch Daniels' plan; Obamas opposes tax cut extension Obama Adviser: We're Moving In The Right Direction Delegation divided over top-tier tax cuts |
Obama fights break for wealthy - Boston Globe
Obama fights break for wealthy Boston Globe The rest of the state would be able to keep the tax cut. For middle-income families, that amounts to an average of about $1800 in their pockets each year. ... |
30 options for reforming Social Security -- and how much they'll save - Washington Post (blog)
30 options for reforming Social Security -- and how much they'll save Washington Post (blog) Saving will fall further. This behavioral reaction to the implicit tax on savings will offset much of the expected improvement in Social Security's finances ... |
Cash-strapped Metro targets drivers' pay - Seattle Times
Cash-strapped Metro targets drivers' pay Seattle Times Average pay is up 38.5 percent since 2000 and now averages $60806. Roger Henderson, 69, who was driving the No. 36 route Tuesday, has been with Metro since ... |
More Employers May Look to Higher Deductibles - TheStreet.com
More Employers May Look to Higher Deductibles TheStreet.com It found that, despite the tax savings, only one in five employees contributed to an FSA this year. Employees who do participate typically save between $250 ... |
Let's Be Honest: About Jobs and the Economy - Huffington Post (blog)
Let's Be Honest: About Jobs and the Economy Huffington Post (blog) We are also told that making the richest Americans pay the same level of income tax as they did during the boom times in the '90s would kill the recovery in ... |
How would you cope with an unexpected tax bill? - Money Hospital (blog)
 Telegraph.co.uk | How would you cope with an unexpected tax bill? Money Hospital (blog) The Treasury has said some 4.3m people are likely to get a tax rebate worth, on average, £418 because they have overpaid on their tax bills over the past ... Opinion: Paul Taylor HMRC tries to correct 6m 'mistaken' tax bills Tax foul-up: what to do |