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 a1jeffery
Joined: 09 Mar 2009
Posts: 1
1.33 Dollars($)
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 Posted: Mon Mar 09, 2009 6:19 pm Post subject: Mortgage Points - 2 for 1?? |
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My mortgage broker is offering me a scenario where I pay for one discount point to lower my interest rate, and he'll also give me an additional point back at closing. So essentially, I get credit for 2 points, but only pay for one. If I end up itemizing my 2009 federal taxes, I can then deduct 2 full points even thought I only paid for one.
This is a concept I'm unfamiliar with and wanted to get some outside opinion. Anyone have any thoughts?
Thanks. |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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| Posted: Tue Mar 10, 2009 2:09 am Post subject: |
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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.
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Good is the Enemy of Great. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7448
Location: bloomfield, ct
70.12 Dollars($)
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| Posted: Tue Mar 10, 2009 8:16 am Post subject: |
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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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George M. Akerley
Loan Consultant
860-221-5044 |
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