What document tells me exactly how much I payed in points for my refinance?

Question

If I failed to pay 1/15 of the points on my refinance, can I double the tax deduction in the following year? I'm planning to sell my condo next year, should I wait and recoup the miscalculation when I sell my property?

Answer 1

Your HUD-1 you got at signing should have it. It's the extra long form that won't fit in most files unfolded, with all the costs and taxes on it.
Also your loan origination papers should have it. Call your lender for help if you must, they like to keep in touch.

Answer 2

The HUD-1 statement is where you will see a line called "loan origination fees". Those points are deductible in the year paid, unless for some reason, you need to amortize those points over the life of the loan. In any case, you can't "double" the tax deduction unless you actually paid two years' of points during one year.

As far as recouping the miscalculation at the time of the condo's sale, the points, interest expense and real estate taxes have nothing to do with the calculation of the gain/loss on the sale of the condo. All the expenses I mentioned belong on Schedule A. The sale of the condo is handled elsewhere on the tax form.

If your tax situation is unusual, it might be a good idea to give your specific details to a tax accountant and discuss it with her.

Answer 3

The doc that shows you what you paid exactly for your refinance is called the HUD-1 form. It shows what you paid for EVERYTHING to do with your refinance. Be careful when you look at it to be able to tell the difference between actual refinance costs and the FEES that are charged (title search, courier fees, appraisal fee, attorney fees, etc.). Those fees are one-time costs and are not actually financed, but are reflected in the total amount you pay. Every dollar that is spent for that loan is supposed to be on that HUD-1 sheet, if not, the loan officer or mortgage broker could be called to account.

As to your tax deduction questions, you would have to ask and accountant or an attorney, I'm not adequately informed about that area and definitely would not want to steer you wrong.

Answer 4

You will find what you paid on your HUD1 statement. If you can't find your copy, contact the settlement agent who handled your refinance (title company, escrow office, attorney, etc.)

I thought you had to claim your discount point tax deduction in the year it was paid, but you can check with a tax adviser.

Answer 5

How can you "forget" to pay points? They are automatically added into the refinance closing costs or rolled into the balance of the loan itself.

Answer 6

Your HUD1 statement