Many times, the largest investment a person owns is their home. Homes have been a      good hedge against inflation. Homeowners build equity and can borrow against that      equity for a variety of reasons that could include college, medical, or to start a business.
3. Qualified mortgage interest and home equity loans are deductible for Income Tax      purposes.

4. Property taxes on a first or second home are deductible on for Income Tax purposes.

5. A homeowner can exclude up to $500,000 of capital gain if married, filing jointly or up to      $250,000 if single or filing separately for homes that have been the taxpayer's principal      residence for the previous two years. There is no age requirement for taking the capital      gains exclusion like the “over 55” rule in the past.

     It is not necessary to purchase a replacement home more expensive than the one sold.      Homeowners can buy a more or less expensive home with no tax consequences      assuming their gain is less than the allowable amounts.
6. Preferential tax treatment on gains that have been made from capital assets held more      than one year are permitted by IRS. This is especially important for homeowners with      gains in excess of the allowable exclusion.

7. Mortgage payments include the interest for the time that the money has been used and      principal to retire the debt over a period of time. Each month part of the payment is for      principal accumulation.