February 22 2022

NAMMBA Connect Tour 2022 - Sponsored by Lennar Mortgage

Lennar Mortgage is proud to sponsor NAMMBA Connect Tour 2022.

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January 05 2022

How to Prep Your Home When Heading on Winter Vacation

For peace of mind when you're gone on a winter trip, here a few simple tricks and tips you can use to get your home...

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December 14 2021

FHA Loan Limits Increase for 2022

Check out how the FHA is making things easier for those hoping to buy a home in 2022.

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November 10 2021

Pet-Friendly Remodeling Ideas

Here are a few ideas for making some pet-friendly changes to our homes to make them more fun, friendly and comfortable...

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November 03 2021

Fall Garden Cleanup Checklist

Find out which chores to skip, which are must-dos, and how to keep your garden looking beautiful in the fall.

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October 27 2021

Should You Buy a Home with Cash?

Paying upfront instead of obtaining financing is often seen as a way of getting a leg up on other potential buyers. But is it...

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October 19 2021

5 Ways to Make Your Offer Stand Out in a Tight Housing Market

With huge buyer demand and a shrinking inventory, this market means you'll need to be strategic, creative, and prepared in...

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October 12 2021

Should I Buy a Home with an HOA?

In the excitement of buying a new home, it can be easy to overlook the presence of a Homeowners' Association, or HOA. But an...

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October 04 2021

14 Brilliant Ideas for Decorating Your Porch This Fall

Simple and inexpensive solutions for a cozy, colorful porch that says "welcome."

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Financial IQ February 06 2020

Tax Incentives for Homeowners*

The dream of homeownership comes with many financial incentives. These financial perks extend beyond the more obvious such as building equity and investing in your future, to the size of your tax return each year. Tax season is fast-approaching, so we thought it was a good time to cover the plethora of tax benefits related to owning a home!

Home Mortgage Interest Deduction

Homeowners who itemize deductions may reduce their taxable income by deducting the interest paid on their home mortgage. Homeowners are eligible to deduct interest paid on "qualified residence," defined as a taxpayer's main home or second home by the IRS. This interest can be deducted on loans up to $750,000. ($350,000 for a married homeowner filing a separate return)

Property Taxes Deduction

Deducting state and local property taxes is a major benefit to owning a home. Your state and local governments assess property taxes annually, based on the value of a property.  Property taxes paid at the state and local level are eligible for a $10,000 deduction, or $5,000 for married taxpayers filing separately. 

Mortgage Interest Credit

Lower-income homeowners who meet certain qualifications may qualify for a mortgage interest credit. This means by obtaining a mortgage credit certificate from your local government, you might be eligible to claim a portion of the mortgage interest you pay as a credit. This benefit only applies to new mortgages used for a taxpayer’s primary residence and the government entity must be contacted about obtaining an MCC prior to a borrower taking out a mortgage.

Mortgage Insurance Deduction

Should you secure a conventional loan and have a down payment that is less than 20% of the home’s purchase price, you may be required to pay for private mortgage insurance. 

The good news? PMI will be tax deductible through the end of the year. While this bill expired in 2017, an extension was placed through December 31st, 2020, meaning you can benefit if you already own a home. You may even qualify for filing an amended 2018 tax return!

There is a plethora of benefits to owning a home, but the above are some you may consider when filing your taxes for the April deadline. Get prequalified for a loan now to start taking advantage of these tax breaks for homeowners!

Sources:
IRS
U.S. News
Tax Policy Center

*Consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.

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