Tax Benefits
Homeowners may deduct purchase money mortgage interest and property tax payments on Schedule A of their tax return.  The points you pay to obtain a mortgage may also be deducted from your tax return. 

Effective 1997, when you sell your home, you may exclude up to $250,000 ($500,000 if married, filing jointly) of capital gain ("profit") from your taxable income.  You must have lived in the home as your principal residence for two out of the last five years.  You do not need to replace the home you sold with another home to qualify for this capital gain exclusion!  If your gain is greater than these limits, the excess is reported on your tax return as a capital gain.

Consult your tax professional for details and limitations on these situations.


Investment Potential
The purchase of a home is most people's largest investment.  In the long run, investment in one's home far outpaces inflation.