All Posts Tagged With: "points"
Mortgage Points And Tax Deductions
Points — or loan discount fees — are deductible in the year paid for financing used to acquire a personal residence. Points paid to refinance a home must be paid out over the loan term. Example: if you refinance, get a 15-year, $100,000 loan and pay a point, $1,000, at closing, then you would deduct [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Can I Deduct Seller-Paid Mortgage Points?
If a seller pays points, the points are deductible in the year paid as an expense of selling. If a buyer pays points, the points paid by the purchaser are deductible by the buyer in the year paid. If a seller pays points to assist the purchaser, the BUYER may deduct the value of the [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
How many points must one pay to reduce an interest rate 1 percentage point?
It’s generally agreed that one point paid at closing is equal to 1/8th of a percent in interest over the life of a 30-year mortgage. To obtain a one percent interest rate reduction some would thus argue — incorrectly — that a borrower must pay 8 points up front. Why is this argument incorrect? Because [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
Isn’t It Time For Portable Mortgages?
Each year about 40 percent of all home sales involve first-time buyers, which means that 60 percent of all transactions involve people who have bought and financed before. Surely buyers, sellers, and brokers must wonder why it is that with each home sale buyers must be repeatedly qualified and why debt from one home cannot [...]
7Aug2008 | Peter G. Miller | 0 comments | Continued
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