Currently we are renting a house. Can you explain to me what tax benefits we could benefit from if we were to buy a house?

Many people who currently are renting are unaware that owning a home may be within their budget. There are many tax savings that reduce the overall cost of owning a home. Every time you make a mortgage payment you are building an investment for your portfolio. Home ownership allows you to put money into your biggest investment rather than into your landlord's bank account. The tax savings you can earn could make home ownership more affordable than you may have originally thought. Many factors affect the tax benefits you can receive, but it is typical that a homeowner could receive thousands of dollars in tax benefits.

Some examples of tax benefits for home owners include the interest you pay on your mortgage and on the points you may pay to reduce your interest on the mortgage. For people who pay less than 20% down and need to buy mortgage insurance the cost of this insurance may be deductable for tax reasons. The property taxes you pay on your home also can be deducted from your tax bill.

There are some improvements you can make to your home that may also qualify for tax deductions. If you need to take out a Home Equity loan to make these improvements you may be able to deduct the interest on the loan. While repairing contents of the home may not qualify for tax benefits, replacing some items like windows, a roof or a heating system may qualify for increasing the purchase price of your home when you do decide to sell it.

For many home owners, the benefit of owning a home over the long term is one of the best investments they can make.