Posted on: 09th Mar, 2009 06:19 pm
My mortgage broker is offering me a scenario where I pay for one discount point to lower my interest rate, and he'll also give me an additional point back at closing. So essentially, I get credit for 2 points, but only pay for one. If I end up itemizing my 2009 federal taxes, I can then deduct 2 full points even thought I only paid for one.
This is a concept I'm unfamiliar with and wanted to get some outside opinion. Anyone have any thoughts?
Thanks.
This is a concept I'm unfamiliar with and wanted to get some outside opinion. Anyone have any thoughts?
Thanks.
Hi a1jeffery
As far as I can understand your situation, you will only be able to claim tax deductions for the mortgage point you paid to the lender. I don't think you will be able to claim deductions on the mortgage point paid by the lender.
Thanks.
As far as I can understand your situation, you will only be able to claim tax deductions for the mortgage point you paid to the lender. I don't think you will be able to claim deductions on the mortgage point paid by the lender.
Thanks.
no doubt...you cannot claim to have paid for 2 points when only paying 1. what in the world did you call this guy? a loan officer? gee, i guess it was a lie when they told us that all the bad guys were gone.
furthermore, when you refinance you cannot deduct all points paid on a loan that next tax year. you must amortize the points over the term of your loan. if you take a 30 year loan, then you can deduct 1/30 of the point(s) paid annually.
furthermore, when you refinance you cannot deduct all points paid on a loan that next tax year. you must amortize the points over the term of your loan. if you take a 30 year loan, then you can deduct 1/30 of the point(s) paid annually.
