Every year, millions of Americans take the plunge into home ownership. As you will see, there are tremendous financial advantages to home ownership that go far beyond quality-of-life issues. We've developed the following to help you enjoy greater peace of mind about buying a new home. After all, there is one indisputable fact:

Owning a home is like having a savings account.

Owning a Home
The mortgage interest is tax deductible-All the interest you pay each year on your mortgage loan is fully deductible from your income. Imagine how substantially this deduction could affect your income tax savings right away.

Points are charged by the lender in connection with your home loan, and are fully deductible in the year you pay them. If you obtain a home equity loan in future years in order to make additions to your home, those charges are again deductible subject to some limitations. This is another plus that reduces your tax liability.

The property taxes you pay on your home are also deductible from your income at tax time. Check your year-end mortgage statement and it will tell you how much property tax you paid. If you pay the tax separately from your mortgage, keep track of those records.

Tax laws in the United States have been designed to encourage the"American Dream" of home ownership. There are tax incentives not only to own a home, but to be able to move up to a better home without penalty. After May 6, 1997, the rollover rule was replaced with an actual tax exclusion of profits from the sale of your home. The exclusion of $250,000 of profits ($500,000 if married and filing a joint return) is generally allowed each time you sell your home and as often as every two years.

In other words, you get the monetary value of your home's appreciation without having to pay taxes. And that makes a future "move-up" more affordable.

• Each mortgage payment goes toward building a nest egg for your family
• Equity in your home can be used to pay for your kids to go to college
• Your children get to play in your yard
• You do laundry whenever you feel like it
• You get to enjoy greater privacy
• You can create a beautiful garden
  

Renting

• Renting is not tax deductible.
• Every rent payment disappears forever
• Your rent usually increases every year or two
• Your children play in the parking lot
• You have to scrape together quarters each week to do laundry
• You know your neighbors musical tastes much better than you know your neighbors
• You are paying off someone else's mortgage