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Buyer's Guide
Save
on Taxes
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Save
On Property and/or Mortgage Interest
This illustration gives you
an idea of the money you can save each year through mortgage
interest and property tax deductions. During the first year,
your mortgage interest payment on a $90,000.00 loan with a
ten (10%) percent interest rate is $9,000.00.
Property taxes amount to a
little over 1.25% ($1,258) of the home’s market value.
If you are in the 28 percent
tax bracket, your yearly tax savings through these two
deductions will come to $2,872.
To calculate monthly
tax savings:
| Purchase
Price |
|
$100,000 |
| Less
Down Payment |
- |
$
10,000 |
| Mortgage
Amount |
= |
$
90,000 |
| Interest
Rate |
x |
10% |
| 1st Year
Mortgage Interest (Interest only) |
= |
$
90,000 |
| Property
Taxes |
+ |
$
1,258 |
| Total
Tax Deductible Items |
= |
$
10,258 |
| Owner’s
Tax Rate |
x |
28% |
| Tax
Saving |
= |
$
2,872 |
| Monthly |
/ |
12 |
| Monthly
Tax Savings |
= |
$
239 |
To calculate monthly
payment after taxes:
Monthly Payment (PITI)
+ (PMI)
(Includes principal, interest, taxes, insurance and private
mortgage insurance)
| 790+105+25+30
= Gross Payment |
|
$
950 |
| Monthly
Tax Savings |
- |
$
239 |
| NET
MONTHLY PAYMENT (After Taxes) |
= |
$
711 |
This information
is provided only as a possible tax deduction. You will need
to consult with a qualified accountant for an accurate
statement as to any tax deduction you may receive.
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