Mortgage rates are still in a good place, and there are a lot of homes available for prospective buyers. If you need any additional incentive to purchase a home in 2015, how about these 3 tax breaks?
- Deductible Points are a pretty standard tax break, but in 2015 it might be a good time to buy some points. One point can lower your interest rate by about .25%, and with interest rates around 3.6% for a 30-year loan, purchasing a couple points can bring your interest rates even lower. Additionally, points are considered a type of interest, and thus they are tax-deductible.
- In an era in which the country is trying to be more energy-efficient, home buyers in 2015 can write off 30% of the cost of any upgrades on energy-saving systems they install in their homes. The Residential Renewable Energy Tax Credit, as it’s called, includes geothermal heat pumps, solar panels, wind turbines and fuel cell properties.
- Lastly, there’s the fact that you no longer have to rent a home. Renters don’t get anywhere near the tax breaks that homeowners do. Apart from that, rent has the tendency to fluctuate – and by fluctuate, I mean rise, from year to year. As a matter of fact, The Wall Street Journal noted that rent has generally gone up nearly 16% in the last 5 years alone. A mortgage, on the other hand, is much easier to deal with.
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