K.C. McLaughlin

First-Time Buyer Interest Federal Tax Credit

 

 

Basic benefit is that 30% of the mortgage interest paid, becomes a tax CREDIT (not a tax deduction). The remaining 70% of interest paid is still a deduction….

 

Maximum of $2000 annually or $166/month elimination of Federal tax obligation

For the life of the loan! 

 

Qualifications:

<$78,300 income in Wake
<$78,300 income in Johnston
<$67,300k income in Orange
<$67,300 income in Durham
<$67,300 income in Chatham

 

Example:

$200,000 home, FHA loan, 3.5% down (gift allowed).  4.75% rate- 193k loan.

Approx interest 1st year = 193k x 4.75% = $$9,103.22 x 30% Tax Credit, = $2730.96. (Max credit is $2,000 year. ) Client get $2000 reduction in Federal taxes.

Client owed 4k in Fed tax….They now owe 2k… Its like getting $166 off the loan payment every month!!!!

If PITI with Mortgage insurance is approx $1,422 and they save $166/month as a tax credit, its like getting >11% off the payment every month!!!

 

 

K.C. McLaughlin
Broker Associate, REALTOR®, e-PRO®
RE/MAX United
51 Kilmayne Drive
Cary, NC 27511

Cell: (919) 609-7463
Email: KC@KCMcLaughlin.com

Getting People From Where They Are... To Where They Want To Be!