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Home Ownership Tax Benefits

One of the biggest advantages of owning a home is that the interest on your mortgage is 100% tax deductible. Loan fees and points paid to discount your interest rate are also deductible.

Furthermore, you can deduct up to $100,000 in debt from a Home Equity Line of Credit.

The example below demonstrates how mortgage tax deductible benefits can make home ownership more affordable than renting – even with no money down.


Average area rents: $2,650/month
Average sales price of area home: $600,000

5/1 Interest-Only ARM with 1st and 2nd Trust Deed

1st Rate
2nd Rate

5.750% (5.104% APR)
5.900% (5.274% APR)

Down Payment


Estimated Monthly Payment - $2,890

Tax and insurance - $765

Tax Deduction - $1,050*

Estimated Real Monthly Cost - $2605


*Based on 30% tax bracket. Alex Veloria a professional tax advisor in the state of California for more information contact him at: 818-523-9737


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