I am a new homeowner. I bought the house using an 80/20 loan so I did not put anything down and the sellers paid all of my closing costs. I ended up with 13.50 out of pocket at closing. No points were paid.
I am trying to figure out tax wise, what is/was deductible. I realize all interest is deductible....but how does that work? Lets say I will pay 12,000 in interest this year, what percentage is generally given back to me? Certainly not more than I paid in taxes and does this come back to me via federal or state taxes? If you could speak s-l-o-w-l-y (ha) I would appreciate a little breakdown in how this works.
Also, my home taxes are deductible?.?...
Thank you, in advance!!
