Being a first time homebuyer can be quite advantageous! The reasons compose a long list: from putting down familial roots to investing into a long-term asset. It is one of the most profitable actions of a homeowner’s financial future. First-time homebuyers are usually at the beginning steps of becoming financially established.
With this thought in mind, many programs and perks have been designed to help support that first-time homebuying experience:
Home Mortgage Interest Deduction:
This is probably the most well-known advantage of home ownership. Being able to deduct all the interest you pay towards your mortgage has a massive impact on your taxes. This deduction applies whether you own the home, your spouse owns the home, or you own it jointly. At the end of the year, you should receive a form 1098 from your lender reporting the interest you’ve paid over the course of the year. As a first-time homebuyer, you may also qualify for subsidized interest charges under special programs.
Points are the pre-paid interest which you purchase at closing to improve your mortgage rate. The more points you purchase, the better your mortgage rate. There are certain requirements, including the loan must be secured by your main home. However, first-time homebuyers may be able to deduct the points the year they purchase them, further assisting them with their taxes.
Special Programs and Down-Payment Assistance:
Many first-time homebuyers qualify for special programs offering down-payment assistance. These programs can have a substantial effect on down-payment requirements, often lowering the required amounts to less than 3%. Other available assistance programs may include smaller lender fees or subsidized interest on the mortgage.
Becoming a first-time homeowner can be overwhelming. The impact the mortgage process has on your financial future can be long-lasting, which is why it is imperative to take advantage of all the opportunities available through first-time home buying programs.
Our brokers at North Florida Mortgage are here to assist and guide you through the process, to ensure you get the best possible rate. We want to make your home purchase a pleasant experience. Please feel free to contact us with any questions or concerns. We’re here for you!