Taxes and Equity
The tax advantages of owning a home may be substantial. Interest paid on your mortgage is deductible, which is especially significant during the initial years of certain loans because the majority of the monthly payment constitutes interest over principal. Interest paid on a home equity loan or line of credit may also be deductible, as are property taxes.
The creation of equity is perhaps the single most advantageous aspect of homeownership, financially speaking. In its simplest definition, equity is the difference between what your property is worth and how much you currently owe on your mortgage. Equity increases as the mortgage is paid and/or as the property enjoys appreciation.
