One of the more frequent questions lenders get when pre-approving a client for a new home is “How much will this new home save me on my
tax bill each month”? Many home buyers use the monthly tax savings to offset the increase in housing expense that a new home can bring. The savings can help the buyer to budget for a higher priced home which could make it possible to live in a more desirable neighborhood, possibly reap the benefits of higher property appreciation and help the buyer to have better resale options.
To help illustrate a home buyers potential monthly tax savings, the below chart shows the loan amount, monthly tax savings and how the monthly tax savings could be used to increase purchasing power.
| Loan Amount | Monthly Savings | Increase in Purchase Power |
| $250,000 | $297 | $56,000 |
| $300,000 | $356 | $67,000 |
| $350,000 | $416 | $80,000 |
| $400,000 | $475 | $94,000 |
| $450,000 | $534 | $103,000 |
| $500,000 | $594 | $113,000 |
| $550,000 | $653 | $124,000 |
| $600,000 | $712 | $137,000 |
| $650,000 | $772 | $146,000 |
• Above based on mortgage interest rate of 4.75%, and a Federal Tax Brackett of 30.%
• Source: homes.yahoo.com – Figures to be verified with your CPA

Homes on this street rarely become available and many are still in fairly original condition with original owners from the 1960s (honestly why would anyone want to move) and range anywhere from the low $3,000,000s- to well into the $4.0M’s for anything remodeled, especially with beach access.