Owning a home could save homeowners thousands of dollars in taxes. Under federal law, homeowners may deduct the interest paid on a mortgage loan, and in turn, pocket substantial savings-as much as $3,500 on a $150,000 property.

“Homebuyers often overlook or underestimate the tax benefit of deducting interest paid on a home loan,” said Richard Douglas, regional manager for the Atlanta area of Norwest Mortgage.

Douglas reminded homeowners that the deduction is highest in the initial years of the mortgage.