So you woke up this morning in a cold sweat. Oh man, it’s tax day!
If you owe money to the IRS it’s pay day, but you’re not the one getting paid. You’re writing the check. How can you get out of this dreadful situation? Oh, I know, I know…..buy a house. If you are renting right now you are making a mortgage payment. Unfortunately it’s not yours, it’s your landlord’s. And guess what, the landlord is getting all the tax deductions. They should be sending you thank you notes every month!
Meet Ima Homeowner. She bought a new home on January 1, 2008. The sales price was $200,000. She financed the purchase using FHA and rolled her upfront mortgage insurance premium into her loan, which totaled $196,377.50. She had good credit and was able to get a 5% interest rate. During the first year, she paid $9,753.08 in interest. In addition, her property taxes were $2500. Her total tax deduction is $12,253.08 (interest and property tax) Her tax bracket is 30% so her tax savings for the first year is $3675.92, or $306.33 a month. In addition, discount points, even if they are paid by the seller, are deductible in the first year of ownership. Two (2) points were paid on her loan, or $3927.55. That increases her total deduction to $16,180.63 and at a 30% tax bracket her savings increases to $4854.19 or $404.52 monthly.
There’s no magic, no sleight of hand. It’s really that simple to turn your blues to green.
Don’t wait any longer. Now’s the time to free yourself from the burden of rent. Consult with a professional agent today. Get off that path to continued debt and on the road to financial independence! You know you can do it. We’re all rooting for you!
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