Tax Advantages

Take Advantage Of The Tax Advantages.

Interest on your home mortgage is tax deductible. And if this is your first home, there may be additional first-time buyer deductions you can take advantage of.

New Construction

New Construction Means Less Maintenance.

New homes need less maintenance than older homes and come with a warranty. In addition, major appliances, fixtures, and components are covered under their own manufacturers' warranties.

Owning Vs. Renting: The Decision is Clear.

When you pay rent, you build equity in your landlord's property. When you pay a mortgage, you build equity in your own property.

To help evaluate the financial benefits of homeownership, we've crunched the numbers. The figures shown below represent a typical situation in the Madison area. As you can see, homeownership has its benefits.

The Costs Rent Own
Sale Price N/A $350,000
Down Payment N/A $17,500
Closing Costs and Fees N/A $0
Property Taxes N/A $7,700
Loan Amount N/A $332,500
Interest Rate N/A 4.50%
Annual Insurance Premium $240 $550
Tax Bracket 24% 24%
Annual Appreciation N/A 3.50%
Monthly Payments Rent Own
Rent/Monthly Principal & Interest $1,500 $1,685
Monthly Deposit for Taxes N/A $642
Monthly Deposit for Insurance $20 $46
Private Mortgage Insurance N/A $92
Total Monthly Payment $1,520 $2,465
Income Tax Savings N/A $200
Monthly Payment After Taxes $1,520 $2,265
Property Appreciation Per Month $0 $1,021
Net Monthly Cost $1,520 $1,244
Market Value After 5 Years N/A $415,690
Equity After 5 Years N/A $112,590

This example is based on a 30-day lock, 780 credit score. After-tax payments based on 24% tax bracket. Each person's financial circumstances will differ. Your actual tax savings may vary. Please consult a tax professional for guidance. This chart is an example. Interest and appreciation may vary pending market conditions.