How much of a tax savings can I realistically expect when I buy?

Hello,Certain closing fees to buy the home the first year. Also, all the interest and property taxes every year which can be a substantial amount. Todd Windes661.342.5999

Each person, and their tax situation is different, so it is hard to be specific. This is a bit simplistic, but, you know you can write off the interest on your mortgage. So assume over the course of one year, you pay $15,000 in interest. If you made $75,000 in income, you write off the $15,000, and your taxable income would only be $60,000. What would you pay on $60,000 income? Another way of looking at that is to assume you are in the 20% tax bracket. $15,000 in reduced income would be $3,000 in tax savings.

Joe Metzler seems to have explained it well. I would add that most of your payment...particularly the first 7 years of a 30 year fixed loan go towards interest and that is a savings important to consider! If you have a $400,000 loan with 3.5% rate (low loan amount in many parts of California) you would have a monthly principle and interest payment of $1796.18, of which $1166.67 would be interest.You will need to add property tax and homeowner's insurance monthly payments, and assuming 20% down payment on a $500,000 purchase, you end up with a total monthly PITI of $2382.Compare rent of say $2400/mo. Subtracting $233.40 interest from $1796 equals $1562. Then you subtract the principle you put towards equity in your home and you get $934. So compare $2400 a month rent with $934 plus $520 property tax & $65 homeowners insurance or $1519/mo.,and buying a home sounds that much better! There is not a guarantee that value at time of purchase, or higher, will be in evidence in seven years or average time people keep a home, but in many desirable areas of the country, it is highly likely.

It's impossible to say without knowing/predicting your income, expenses, loan amount, etc.. this I know for sure.. owning a home vs. renting will definitely give you a bigger tax savings.... and the larger the loan amount, then the greater the savings.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347