So i'm hearing all these tax breaks talk if one were to buy a home. Can someone explain what it means? Say you make: 48k/year and you pay 12k/year in taxes (~ 1k/mo in taxes). Your mortgage is 300k (you made minimal down payment) over 30 years. ~ $1750/mo in house payment. So what do these numbers mean in terms of how much less tax you have to pay based on ur salary? thanks. So are your new taxes (48k-1750*12 mortgage payments)*.25 (25% taxes) = $6.75k in taxes paid each year instead of 12k in taxes?