Mortgages  |  Mortgage News  |  Mortgages Calculators  |  Apply Online

Tax Benefits of Buying A Home

Add this calculator to your site

Description
This calculator estimates the tax benefit of buying a home. Please enter your loan parameters as well as the month in which the loan closed (e.g. the home was purchased). Interest payments and mortgage points are captured in itemized deductions of your tax return, hence please estimate your Schedule-A itemized deductions. In this calculator, your itemized deductions (including your mortgage deductions) are compared to your standard deduction to calculate the tax benefit of purchasing the home.
Tax Benefits of Buying A Home
Loan Information
Loan Amount ($)  Glossary of Terms
Interest Rate (%)  Glossary of Terms
Points  Glossary of Terms
Loan Term (Yrs)  Glossary of Terms
Month of Purchase  Glossary of Terms
Filling Status  Glossary of Terms
Tax Rate  Glossary of Terms
State Tax Rate (%)  Glossary of Terms
Real Estate Taxes ($)  Glossary of Terms
Other Deductions ($)  Glossary of Terms

Result
Mortgage Payment: $1,320.78 Standard Deduction: $7,850.00
Loan Points: $3,600.00 Interest & Points: $16,200.00
Interest Paid: $12,600.00 Real Estate Taxes: $1,800.00
Other Deductions: $1,350.00
Itemized Deductions: $19,350.00
Additional Deductions: $11,500.00
After Tax Payment: $941.28 Tax Benefit: $3,795.00

Glossary of Terms
Loan Amount: Money borrowed that is usually repaid with interest. Return to Top
Interest Rate: The amount of interest charged on a monthly loan payment; usually expressed as a percentage. Return to Top
Points: A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent. Return to Top
Loan Term: The number of years required to pay off the principal and interest of the loan. Return to Top
Month of Purchase: The month where you are expected to take ownership of the property. Return to Top
Filling Status: Your civil status Return to Top
Tax Rate: The income taxes you pay expressed as a percentage of your gross income. Return to Top
State Tax Rate: The state income taxes you pay expressed as a percentage of your gross income. Return to Top
Real Estate Taxes: Deductible real estate taxes include any state, local, or foreign taxes on real property levied for the general public welfare. Deductible real estate taxes do not include taxes charged for local benefits and improvements that increase the value of the property. Return to Top
Other Deductions: Any deductions than can be used against your income such as interest charges on loans secured by your residential property. Return to Top

Disclaimer: We cannot guarantee the accuracy of this calculator. You should check with your finance provider before entering into any contracts.