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a1jeffery · Joined: 09 Mar 2009 Posts: 1 1.33 Dollars($)

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.

Niicss · Posted: Tue Mar 10, 2009 2:09 am Post subject:

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.

gmakerley · Posted: Tue Mar 10, 2009 8:16 am Post subject:

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.

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Mortgage Points - 2 for 1??