The biggest tax advantage when owning a home is the tax deduction that you will receive from the interest paid on your mortgage. In the first years of any mortgage, the majority of your payments will be applied to the interest, and is fully tax deductible!Another tax advantage of owning a home, which is indirectly related to having a mortgage, is the Property taxes are a right off against your income, and should work to reduce your income tax.
This is one reason why refinancing can be good for you and benefit you. By consolidating some credit card and other debt into a refinance of your home loan you will now be able to write off the interest on your entire mortgage debt which includes your other debt too. Consult a licensed tax professional with any questions about mortgage interest deductibility.
There may be limitations on tax deductability on home equity loan interests. Always consult a certified tax accountant before making any tax deductions.
If you are self employed or work from home and have a dedicated office in your home you also can take a home office deduction saving even more money on taxes every year.
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