Maryland Home Credit Program

Mortgage Credit Certificates (call 888-311-1070 for more information)

Why an income tax CREDIT is better than a deduction.

….and how does a homebuyer GET that credit?
• You want to buy a $250,000 house. You plan to put down 5% or 10%.
• You are a first time buyer in Maryland or are buying in Baltimore City (or other Target Area).
• Mortgage interest this year will cost over $8000.
• That interest is deductible for income taxes.
Now take $2000 of that as a TAX CREDIT instead of deducting it .
• How much do you save?
    Answer…. $125 per month *….
•What does this make the interest rate look like?
    Answer…. The state’s Excel examples all show about a half percent lower effective rate .

*The math is: $166 [$2000/12] – $41 [$2000 *.25 /12] = $125 per month income tax savings for a credit vs deduction.
Tax bracket of 25% is assumed (most homebuyers are in this bracket).
Lower tax brackets may actually save MORE.
There is a fee, but in many cases I can get the cost covered through rate credit.

Click here for the Maryland State Mortgage Credit Certificate web site
If you have Excel, and want to run your own examples….
Click here for the Maryland State Excel sheet

There are additional rules. Call for details: 443-829-2210 or email
Maryland Mortgage Program