Mortgage Calculator: Tax Benefits

What are the tax benefits of owning a home?

After buying a home, you can deduct mortgage interest, interest points, property taxes, and mortgage insurance premiums using an itemized income tax form. However, due to various restrictions, you should always consult with your financial advisor to understand the best way to take advantage of these options.

You may also earn an additional tax break for energy-saving home improvements you make after purchase. Other home improvements, such as landscaping, roofing, fencing, etc., may be listed as well. You will not be able to deduct these expenses, but the cost of improvements will be added to the purchase price of your home. The profits made as the result of these improvements may be tax-free when you sale the home.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended as a solicitation for any credit product or to provide credit advice. Calculators and input options are intended solely for general information and educational purposes. Calculations are hypothetical, and based on information and assumptions provided by you. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. You should not take any action on the basis of the information provided through this calculator. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

How to use this calculator

Loan info:

Enter your mortgage loan details, including purchase price, down payment, term, and interest rate. This will help us estimate your average yearly tax savings and the after-tax interest rate on the loan.

Upfront fees:

The origination charge is generally between 0.5% and 1% of your mortgage loan, but check with your mortgage specialist to confirm. For Other Settlement Services, consider the cost of an appraisal, credit report, flood certification, tax service, lender and owner’s title insurance, and government recording fees.

Taxes & insurance:

To find property taxes, check MLS listings online, or contact your county’s assessor/recorder’s office or a local real estate agent. Calculate homeowner’s insurance here, or contact an insurance agent for a quote.