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8 answers

Buy-downs are done in several ways with points being the most common. You should always try to get the seller to pick up 1 point as he too can deduct it. Discounts can also reduce the rate but you will pay the difference at closing. Discounts aren't deductible and should be avoided. Look on your closing statement for YSP or POC and see how many points your lender made by pricing you up. You may have been duped into paying down against a higher rate than you actually qualified for.

2006-12-29 05:58:23 · answer #1 · answered by Kevin H 4 · 0 0

If you are talking about paying points, then yes, the points would be deductible. Points would be fully deductible in the year in which it was paid when it is related to a mortgage for the purchase of your principal residence. If the points were paid on a mortgage in a refinance, then it is deductible evenly over the entire life of the loan.

2006-12-29 04:40:15 · answer #2 · answered by jseah114 6 · 0 0

Points you pay for a lower mortgage payment are ALL deductible when you first buy your home. Points on a re-finance need to be taken over the life of the loan each year. For example, if you paid $6000 in points for a 30 year mortgage, each year you could deduct $200.

2006-12-29 04:43:14 · answer #3 · answered by fastfrank7 5 · 0 0

If this was for a "purchase money" mortgage -- money to buy the home then yes they are deductible in the year they're paid. If the points were paid for a re-fi they must be spread out over the life of the loan.

2006-12-29 04:41:47 · answer #4 · answered by Bostonian In MO 7 · 0 0

I had a lot of questions on my never ending mortgage payments. I found this neat interest rate calculator online http://www.iwebtool.com/shortcut/8207 , when I filled the form out it gave me a clear online breakdown of my payments with suggestions to save.

2007-01-01 08:43:15 · answer #5 · answered by Derek N 1 · 0 0

you're talking about "points." I think they are deductible.

2006-12-29 04:39:10 · answer #6 · answered by I hate friggin' crybabies 5 · 0 0

yes

2006-12-29 07:03:32 · answer #7 · answered by Anonymous · 0 0

If this was "points," then YES!!!

2006-12-29 04:45:29 · answer #8 · answered by Anonymous · 0 0

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