Rent Versus Buying

There are two main advantages to buying a home. The first is that you are able to deduct the mortgage interest and real estate taxes from your gross income. By itemizing your deductions on your taxes (Schedule A), you will lessen your tax burden to the IRS. The tax savings can be realized either through your refund when you file your taxes or by increasing your number of exemptions to allow for the potential refund to be allocated as part of your take home pay. You should consult with a CPA or tax professional to determine your tax savings.

The second benefit is you now own an asset, which through your monthly mortgage payments and potential market appreciation, will likely make you money in the long run when you decide to sell your home.

Under the calculator section of our website, you will find a rent versus buying calculator that will demonstrate the advantages given your specific situation. Also, your loan officer may be able to give you additional guidance that can help you make a good, informed decision.