Home Taxes

I'm even more excited about building a home now because I just found out that if I finish building my house in January 2008, I will not have to pay the full property taxes (accessed in January 2008) until June of 2009 for the 2009 tax year! I will have to pay taxes based on the lot value in June of 2008, but that will be closer to 25% of the taxes based on the home's value plus the lot!

So to summarize all the useful information I have learned so far:

• The tax you pay in 2008 is for the tax accrued in 2007
• Property tax is normally 2.25-3% of the accessed market value
• Primary Mortgage Insurance (PMI) will be charged if you pay any amount under 20% down payment. It will be less, the more you put down.
• Interest paid on your mortgage is tax deductible
  
  For example on a 200,000 property with 20% down, you'll pay $10,680 in interest, meaning you can deduct that amount from your taxable income for federal taxes. This means you'll get about $1560 back in taxes!