First-Time Homebuyer Credit

• If you bought a home between Jan. 1 and Dec. 1 of 2009 and had not owned a home for the past three years, you can claim a tax credit of 10 percent of the cost of the home, up to $8,000. To qualify, your modified adjusted gross income must be less than $75,000 is you file a single return or $150,000 if you file a joint return.
  
  

Real Estate Taxes

• Money that you pay to state or local governments for real estate taxes is deductible from your federal taxes.
  
  

Mortgage Interest

• The interest you pay on your mortgage is tax deductible. This is especially beneficial at the start of the mortgage, when most of your payment goes to paying interest rather than reducing the principal of the mortgage.
  
  

Discount Points

• If you pay points to reduce your interest rate, deduct those costs from your taxes.
  
  

Private Mortgage Insurance

• If you pay less than 20 percent of the value of the home as a down payment, you will usually have to pay for private mortgage insurance until you have 80 percent equity in your house. The premiums for the insurance are tax deductible.