NAR Dashboard

Welcome!

Our Mission.

You care about your home. The NATIONAL ASSOCIATION OF REALTORS® cares about homeownership. To help you become the best, most responsible homeowner you aspire to be, we want to provide you with free information and tools you can use to make smart and timely decisions about your home.

From time to time, we may reach out to you to help us support legislation and/or policies that may have an impact on you, the homeowner. You can choose to join our cause. Or you can choose not to. Regardless, your privacy is safe with us.

We'll never share or sell your email address or other personal information you may provide us in the course of using the site with anyone without your explicit consent.

Your Mortgage Deduction: Turn Tax Savings into Home Value

Sock away your mortgage deduction tax savings, and you’ll have a nice cushion for life’s necessities—and a few luxuries. Here’s how a typical household might spend their tax savings at various life stages (figures from the NATIONAL ASSOCIATION OF REALTORS® based on a $200,000, 30-year loan at 5% interest).

Added to Binder
Prev
6 of 7
Next
30 years = $42,819 Accumulated Mortgage Tax Savings

With grandkids on the way, Jason and Abby add a swimming pool for $30,000. Hey, they’re still young at heart, so Abby schedules a $6,800 facelift while Jason opts for the $5,200 hair transplant. And there’s enough left for a $160 bottle of Dom Perignon to toast to a life well-lived.

 

Laurence Dutton/Photographer’s Choice/Getty Images

Image: Laurence Dutton/Photographer’s Choice/Getty Images
See All Slideshows
  • With twins due, Jason and Abby decide to replace their water heater with a 50-gallon high-efficiency gas model for $1,850, installed. Feeling his age with fatherhood on the horizon, Jason buys a set of Bowflex Select Tech 552 Dumbbells for $399. Unfortunately, he drops the weights on the wood floors in the nursery. Repairing the oak strip flooring eats up his exercise time.

     

    Steve Cole/Stone/Getty Images

  • The twins are ready for kindergarten, so Jason and Abby put $10,000 of their mortgage interest deduction savings into a 529 college savings fund. In 13 years, the fund could pay off a chunk of the twins’ freshman years at good state schools. With leftover savings, Jason buys a Kettler Match 5 Outdoor ping pong table. That first day, a paddle slips and breaks a family room window—a $750 replacement job.

     

    Veer

  • Jason and Abby spruce up the ranch with a roofing replacement ($20,000). Jason buys a Canon PowerShot G12 camera ($500) to take closeups of the new roof. As he climbs a ladder, he loses his footing, grabs a rain gutter, and pulls off a 20-foot section. Fortunately, Jason isn’t hurt and replacing gutters isn’t too expensive.

     

    Roy Ritchie/Taxi/Getty Images

  • The kids’ friends are permanent fixtures in the house, so Jason and Abby earmark $16,600 for a downstairs bathroom remodel, a new entry door system ($3,600), and a home theater with a 50-inch flat screen. Enough is left over to take the clan to Hawaii for spring break ($5,500), although Jason steps on a sea urchin and is confined to a lounge chair for the vacation.

     

    Dave & Les Jacob/Blend Images/Getty Images

  • Jason and Abby build a stylish deck on the back of the house for $11,000, a smart investment. Using $21,000 of the remaining savings, Abby quits her job as an insurance actuary and starts a yoga studio. There’s enough left over for a nice $4,000 hot tub/spa out on the deck, which Abby appreciates after a day of bhujangasana poses.

     

    CREATISTACREATISTA/iStockphoto

  • With grandkids on the way, Jason and Abby add a swimming pool for $30,000. Hey, they’re still young at heart, so Abby schedules a $6,800 facelift while Jason opts for the $5,200 hair transplant. And there’s enough left for a $160 bottle of Dom Perignon to toast to a life well-lived.

     

    Laurence Dutton/Photographer’s Choice/Getty Images

  • If you like these, you may want to take a spin through HouseLogic’s library of slideshows.

     

  • 1 year = $2,250 Accumulated Mortgage Tax Savings
  • 5 years = $10,895 Accumulated Mortgage Tax Savings
  • 10 years = $20,756 Accumulated Mortgage Tax Savings
  • 15 years = $29,297 Accumulated Mortgage Tax Savings
  • 20 years = $36,154 Accumulated Mortgage Tax Savings
  • 30 years = $42,819 Accumulated Mortgage Tax Savings
  • Like our slideshows?
  • 1-year-2250-accumulated-mortgage-tax-savings
  • 5-years-10895-accumulated-mortgage-tax-savings
  • 10-years-20756-accumulated-mortgage-tax-savings
  • 15-years-29297-accumulated-mortgage-tax-savings
  • 20-years-36154-accumulated-mortgage-tax-savings
  • 30-years-42819-accumulated-mortgage-tax-savings
  • more-slideshows
  • Image: Steve Cole/Stone/Getty Images
  • Image: Veer
  • Image: Roy Ritchie/Taxi/Getty Images
  • Image: Dave & Les Jacob/Blend Images/Getty Images
  • Image: CREATISTACREATISTA/iStockphoto
  • Image: Laurence Dutton/Photographer’s Choice/Getty Images