Looking for extra tax breaks this year? Buy a house! Renters do not get many tax breaks but homeowners sure do.

Go Green

Get in on the Green Wave and deck out your new home with some energy saving appliances. 30% of the cost can be written off as part of the "Residential Renewable Energy Tax Credit". Energy saving appliances such as Geothermal heat pumps, solar panels, solar water heaters and wind turbines are eligible for this tax credit, as long as your tax credit exceeds your tax liability.

Mortgage Interest

As a homeowner, month after month you receive your statement and there is that little line that says "Mortgage Interest". Every month you pay it, and at the end of the year it could be the largest federal income tax break that is available to homeowners. This tax break is not only available for your first mortgage, but also for your second mortgage.

PMI Deduction

PMI Deduction allows you to deduct money that you have paid on private mortgage insurance (PMI). Anyone that purchases a home and does not put at least 20% down must pay for private mortgage insurance. This tax deduction coupled with the mortgage interest is a huge write off.

Discount Points

Discount points that are paid at closing can also be tax deductible. Points typically cost around 1% of your loan amount, so if your 30 year fixed rate mortgage loan is $350,000 with a 3.8% interest rate and you buy 2 points at $7,000.00 you could reduce your interest rate down to 3.3%.

Property Taxes

Property taxes are fully deductible as long as your money is not being held in a escrow to pay your property taxes.

On top of all these amazing tax deductions, the mortgage rates for a 30 year fixed rate mortgage are at an incredible low of 3.65% , the housing industry is booming for the spring and the rental rates continue to rise!

What better time to become a home owner instead of a home 'dreamer'?