With tax time approaching.... homeowners, don't forget these tax breaks! 1. Interest 2. Insurance 3. Points 4. Taxes 5. Energy star 1. Mortgage Interest Deduction Mortgage Interest Deduction (MID) is a top tax break for homeowners, which can save you a significant amount of money. In the beginning, the majority of your monthly mortgage payments go toward loan interest, and you can deduct all the interest from your mortgage on your taxes. Keep Form 1098, issued by your lender, with your important records. This form explains exactly how much you can deduct and serves as proof if you are audited by the IRS. 2. Mortgage Insurance Premiums Homeowners with new mortgages with a loan-to-value ratio higher than 80% must carry some form of private mortgage insurance (PMI). This insurance protects the lender against loan default. Typically, once you reach 20% equity in your home, you can avoid paying private mortgage insurance. 3. Points Points refer to charges or fees paid by a borrower to obta