Did you know that June is National Homeownership Month? There are all sorts of benefits only open to home owners. We’d like to share a few of them with you today.

Mortgage Interest Deductions : Tax rates favor home ownership. Because of this, homeowners have their own built-in tax shelter. The way that the majority of mortgages are structured, the largest part of your payment upon purchasing a home is actually interest. This interest is fully deductible! You can deduct it on your tax returns, as long as your mortgage balance is smaller than the price of your home. If you’re interested in a comprehensive look at home mortgage deductions – including points, insurance premiums, and deducting interest – refer to IRS Publication 936.

Property Tax Deductions: While you’re looking at the tax publications, check out your property tax deduction too. The majority of homeowners pay some form of local or state property tax, which is based on the assessed value of your real estate holding. In most cases these taxes are deductible as long as it is on the assessed value, and it’s a uniform rate assessed on all property in the jurisdiction.

Build Equity: For most – unless you’re currently on an interest-only mortgage each month – a portion of your mortgage payment is applied to the principle balance on your loan. This means that with every payment you make, you reduce your interest payment and increase your principle payment. Hence gaining more equity! In the early years of your the loan, much more of your payment goes to interest and only a small portion to principle. But there are ways for you to build your equity quicker. It’ll also knock off some of the interest paid of the life of that loan. This can mean paying extra each month, paying bi-weekly, or even paying just one extra payment each year. Just one extra payment a year can knock 6-7 years off the life of your loan!

Equity Loans: Credit cards charge high rates – even as high as 18-24% – and the interest paid on these cards is not tax deductible. However, homeowners who have built up equity may opt to pay off these cards with your home equity loan. You can also use the home equity loan for college, home improvements, medical bills, and more. Typically these interest rates are much lower than regular credit lines – plus, the interest can be tax deductible. Check out Publication 936 for more details.

Capital Gain Exclusion: If you’ve lived in your old home as a primary residence for a minimum of two of the past five years, you can take capital gains exclusions upon selling your house at a profit. For individuals, up to $250k can be excluded, and for married couples an exclusion of $500k can be taken. You don’t have to purchase another home to qualify for this deduction. Nor are there any age restrictions. This type of exclusion can take place once every 24 months. So in essence, you could make this profit without taxation every two years. Check the tax code for details and potential limitations.

These are just a few additional ways your new residence provides not only a beautiful home but great savings.