Homeownership comes with ongoing expenses, but it can also create opportunities to build equity, potentially reduce your tax liability and support longer-term financial goals. Before closing the books on the year, here are a few things homeowners may want to review.
Take Stock of the Equity You’ve Built
If you’ve owned your home for several years, consider how your equity position may have changed. Home values, mortgage payments and improvements to your property can all affect the amount of equity you have.
Understanding that equity can be helpful as you plan for future goals, whether that means making home improvements, preparing for another major expense or simply evaluating your overall financial position.
Gather Your Homeownership Tax Documents
Not every homeowner will benefit from itemizing, so keep your mortgage and property tax records together and consult a qualified tax professional to determine what may apply to you.
Keep Records of Major Home Improvements
While routine repairs and maintenance generally aren’t deductible as an annual expense, certain improvements may affect your home’s cost basis. That can become important when you eventually sell the property and calculate any taxable gain. Keeping good records now can make things much easier years down the road.
Understand What a Future Home Sale Could Mean
That makes your home more than a monthly expense. Over time, the equity and potential appreciation you’ve built may become a meaningful financial resource.
Look Ahead to Your Next Financial Goal
Your home is one piece of a much larger financial picture. A year-end review can help you understand where you stand today and make more informed decisions about where you want to go next.
Make Your Home Part of Your Year-End Review
Have questions about your mortgage or what options may be available as your needs change? The Core Bank mortgage team is here to help you explore your next step.
This article is intended for educational purposes only and should not be considered tax, legal or financial advice. Consult a qualified tax professional regarding your individual tax situation.
Homeownership Resources
At Core Bank, we want you to feel confident in whatever stage of homeownership you’re in. Whether you’re considering buying, getting ready to sell, or just upgrading your space, our mortgage team of professionals is ready to assist you.
