That Wonderful Thing Called A Tax Break

As a homeowner, when filing your taxes you can deduct the interest portion of your monthly payment-and that can mean big savings.

You can deduct your property taxes, too. So look at what your monthly mortgage payment will actually be, taking your tax breaks into consideration. You may find out it's about the same as-or sometimes even less-than a rent payment!

For example, with a 5% down payment, a $100,000 30-year mortgage loan at 8% interest (8.15% APR) requires a monthly principal and interest payment of $733.76.

Assuming a 28% tax bracket and $150 for monthly property taxes, the after-tax monthly payment would be about $615!

(This is only an example. Please consult with a tax advisor regarding your own tax situation and current tax laws.)