Chris - thank you for asking this question. And thanks to Kristin for answering it.
The way that I explain it to my first time homebuyers, is as follows:1. You will reduce the amount of taxes that you pay at the end of the year, because you are able to deduct the interest that you pay on your mortgage loan and the property taxes. 2. You can estimate your tax savings, and then adjust the tax withheld by your employer for your federal and state income taxes (if applic). This will increase your net take home pay by the amount of tax savings.3. What the calculator is telling you, is that you should be able to increase your net take home pay, by $548 per month. Hopefully the calculator is accurate. 4. I refer my first time homebuyers to a tax person that I trust, that help them calculate the appropriate adjustments for the withholding. She charges an hour of her time, and it has been well received by my clients.Good luck.