tax deduction on the points that I pay on refinancing

Guest 0.10 Dollars($)

I have a plan to refinance this year. I want to know if the points that I have to pay on refinancing, is tax deductible?

Samantha · Posted: Wed Jan 18, 2006 12:28 pm Post subject:

Hi,

Yes they are tax deductible. In fact any points that you are going to pay while you refinance, on your home is tax deductible over the life of the mortgage.

Condition is that the residence is your primary home and the new mortgage that replaces the previous one is taken to improve the residence.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

Hi Samantha,

Shall I get the deduction this year?

Thanks

Samantha · Posted: Wed Jan 18, 2006 12:44 pm Post subject:

Hi,

Usually the points that are paid in refinancing are not deductible as a whole in the year paid. They are deducted over the life of the mortgage.

You can refer this section on refinancing mortgage for more details.

Feel free to ask if you have further queries.

God bless you.

For MortgageFit,
Samantha

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