1 of 10 - ARE YOU BUYING? NOW’S A GOOD TIME - Benefits For Buying At The End Of The Year

November 7, 2006

With mortgage interest rates still hovering around the 6 percent (for 30-year fixed rate) the end of the year is a great time for renters to become homeowners, growing families to move to more accommodating homes, and the Baby Boomers to find homes that fit their evolving lifestyles.

Besides the low interest rates, there are additional benefits for purchasing by the end of the year. Here is #1 of 10:

TAX SAVINGS: Closing the transaction on your new home by December 31st, means you can probably deduct the interest on your mortgage, the property taxes you pay and any points on your loan. These deductions can come off of your income tax return. Also, you may be able to deduct the interest that is associated with a Home Equity Loan. The deductions can be significant, especially in the first years - as you are paying much more toward interest than to the principal. (as always, you should consult your CPA since everyone’s tax liability can be different)

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