Want A Better Mortgage Loan Rate?

Good explanation here of the tax benefits for points paid in conjunction with a mortgage loan.

The Joy of Tax Law

Image

If you want a better loan rate than your mortgage lender is offering, you might be able to buy it down via points. Each point is one percent of the mortgage amount and points are offered on both original home loans and refinancings. And in both case, the points are tax deductible. However, the precise method of deducting them does differ.

On your first mortgage, you can deduct the points in full on your tax return for the year the points are paid. But with a refi loan, rather than deducting the full amount of refi points in the tax year in which you paid them, you must amortize them over the life of the loan.

So instead of deducting, for example, $1,500 in full refi points on a 15-year loan, you deduct $100 worth of points on each tax filing for 15 years — or until you pay it off…

View original post 91 more words

Advertisements
This entry was posted in Interest Rates, Mortgage, Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s