There are many benefits available to first time home buyers:
- As a homeowner, you can deduct your mortgage interest and property tax obligations every April 15. And since most of your mortgage goes toward the interest accrued in the first few years of home ownership, it's like the government is paying you to buy a house.
- Home equity accounts for the portion of your home or property that you actually own, and as you make you mortgage payments every month, your equity continues to rise. You can consider it a type of savings account, where your home continues to appreciate while your loan amount continues to decline. Your equity is the difference between the property value and your outstanding loan amount; therefore, you actually make money as you continue to pay off your mortgage.
- You can customize your new home to your heart's delight. If you need to modify a room into an art studio or if you'd like to try some creative wallpaper, it's your call. Home improvements and modifications will only increase the value of your home.
- The American Recovery and Reinvestment act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. For more information visit the IRS website or contact your local tax representative.
