6 Smart Reasons to Close on Your New Home Before Year-End

Closing on a house before the end of the year can provide several advantages, including:

1. Tax Benefits

• Mortgage Interest Deduction: If you close before December 31, you can deduct mortgage interest, property taxes, and certain closing costs on your federal income taxes for the current year.
• Prepaid Property Taxes: Any prepaid property taxes at closing may also be deductible, reducing your taxable income.

2. Homestead Exemption

For states like Florida, closing before the year ends can make you eligible to apply for a homestead exemption starting January 1. This can reduce property taxes significantly by lowering the taxable value of your home.

3. Locking in Mortgage Rates

If mortgage rates are expected to rise, closing earlier secures your loan terms at current rates, potentially saving money over the life of the loan.

4. Beat the Busy Spring Market

Closing before the holidays allows you to settle in before the traditionally competitive spring real estate season. It also gives you more time to personalize and enjoy your home before busier market activity begins.

5. Year-End Deals

Builders and sellers often want to close deals before year-end to meet financial goals, which could lead to better incentives, discounts, or negotiations in your favor.

6. Move During a Slower Period

The holiday season tends to be quieter in the real estate market. Moving during this time may mean more availability for movers and less competition.