How do Interest Rates
Impact Home Purchases?
It is important to keep the tax advantages in mind when considering whether to rent or buy a home. A monthly mortgage payment of $1,500 could result in a lower overall cost than does a monthly rent payment of $1,200 after you consider tax advantages. Remember that a buyer may not realize this “tax break” until tax time comes. One thing to consider doing is decreasing your withholding of taxes in anticipation of increased interest payment deductions. You will definitely want to contact your tax advisor for more information.