27 Mar Fairway Finds Ways To Save Money For Charlotte First Time Homebuyers
Charlotte homes are in very high demand as supply is low and buyers are ready to move, especially first time homebuyers who are ready to stop renting and make the financial decision to buy a home. Mortgage planners, like our team at Fairway Independent Mortgage of the Carolinas, want to help you understand how your new home can fit in with your goals for your financial future. For example, you could save up to $2,000 each year on your income taxes by using an MCC, a Mortgage Credit Certification (MCC) from the North Carolina Housing Finance Agency! This program can put money into first time homebuyer’s pockets by making your mortgage payment more affordable.
An MCC can be used with almost any fixed-rate mortgage and with some adjustable rate mortgages and is available to first time homebuyers who meet the sales price and specified income limits. The maximum sales price limit is up to $225,000 while the maximum income ranges from $66,000 in more rural areas up to $89,900 for larger families in urban areas. The MCC allows eligible buyers to take a federal tax credit of 30% of the mortgage interest paid annually, saving home buyers up to $2,000 each year that they are in their new home. Also, because the MCC is an immediate tax credit, homebuyer’s can change the withholding allowance on their W4 to reflect their decreased tax liability and increase their monthly take home pay.
For example, if you borrow $183,000 at 5.5% interest, you will pay approximately $10,000 in interest in the first 12 months of your mortgage. With the 30% MCC, you can reduce your federal income tax liability by up to $2,000 for that year, allowing you to reduce your monthly tax withholding by $166. Over the first 10 years of ownership, you would save $20,000 in federal taxes. Like all homeowners, you can also claim an interest deduction on the remaining 70% of the interest you pay.
A new home is one of the most important purchases you can make and Fairway is here to make it as easy and smooth as possible while answering all of your questions. You can trust Fairway Independent Mortgage of the Carolinas to make your home loan as stress-free as possible. Call one of our offices today to get started or schedule an appointment to really look at your financial plans and help you make the best home loan decision or show you how the path toward ownership. We have locations across the Carolinas to make meeting convenient, or simply fill out our online application to get started.