Financial Perks of Buying Your First Home

There are a few ways buying a first home can save money, both upfront and over the long term.

1.      Tax Savings

·         Mortgage Interest Deduction.  You can deduct the interest you pay on your mortgage (up to certain limits) from your taxable income, which could mean significant savings.

·         Property Tax Deduction: State and local property taxes are also deductible, further reducing your tax burden.

·         First-Time Buyer Credits: Depending on where you’re buying, you may qualify for federal or state tax credits specifically designed for first-time buyers.

“MD law provides that the amount of state transfer tax due on the sale of property to a first-time MD home buyer is reduced from 0.5% to 0.25%”  

2.      Down Payment Assistance Programs

·         Talk with a Maryland Mortgage Program-approved lender. They help pre-qualify for the Maryland Mortgage Program and local assistance. 1stTimeAdvantage Lon's  https://mmp.maryland.gov 

·         State-specific programs that help with everything from education to financing PathwaytoPurchase@co.pg.md.us  - eligible for up to $50,000 in down payment and closing costs toward the purchase of your first home in Prince George's County.

Or Baltimore City https://livebaltimore.com/resident-resources/financial-incentives/first-time-homebuyers-incentive-program typically provides $10,000 to $20,000+ in down payment and closing cost assistance to eligible first-time homebuyers purchasing a home.  The amount awarded depends on household income, closing costs, the monthly mortgage payment, and the home's sale price.

3.      Building Equity Instead of Paying Rent and Stability of Fixed Housing Costs

·         When you own a home, every mortgage payment builds equity. As home values typically rise over time, this equity can grow even faster, giving you a solid financial foundation for the future. Think of it as an investment in yourself instead of someone else’s property. Owning a home gives you the option of locking in a fixed-rate mortgage, meaning your monthly payment stays consistent year after year.