You may have heard of the MID – mortgage interest deduction – and that it can benefit home buyers, but what do you really know about it? For one, if you decide to move into your own home, it can really be of benefit to you. However, the most common misconception is that it will help only the wealthy.
If you are thinking about moving into your own home, you should know that the MID can actually benefit you. The group most likely to benefit are actually middle and lower income families. In fact, about 65% of the families who claim the MID make less than $100,000 per year where 91% earn less than $200,000.
How does the MID help? When you move into a new home that you’ve purchased, it reduces the carrying costs of owning that home. Being able to deduct the interest you pay on the mortgage can translate into significant savings during tax season.
For people that live life on a budget and may not have a significant amount of money to purchase a home outright, the MID is a welcome benefit. The MID can help you build your future, especially if you choose to relocate to your own home. So, if you are looking to buy your own home, take advantage of the MID when you file your taxes. The savings could prove to be significant.