Don't Forget If You Get A New Mortgage or Refinance...

TexasOaks · 02-01-2008, 08:24 AM

If you have bought a new home and paid discount points you are able to deduct that amount (prepaid interest) from your taxes in the year inquired. If you refinanced you have to deduct them over the life of the mortgage.

If you sell the house or refinance again you are able to bring forward those discount points and deduct them in that year. In a refinance you are only able to bring points forward if you refinance with a different lender. If not, you have to tact them on to the new loan.

Side note: Usually paying discount points is not wise in the long run but... you have to do the math.

02-01-2008, 08:24 AM	#1
TexasOaks Junior Member Join Date: Jan 2008 Location: Denton, Texas Posts: 28 Reputation: (11)	Don't Forget If You Get A New Mortgage or Refinance... If you have bought a new home and paid discount points you are able to deduct that amount (prepaid interest) from your taxes in the year inquired. If you refinanced you have to deduct them over the life of the mortgage. If you sell the house or refinance again you are able to bring forward those discount points and deduct them in that year. In a refinance you are only able to bring points forward if you refinance with a different lender. If not, you have to tact them on to the new loan. Side note: Usually paying discount points is not wise in the long run but... you have to do the math.

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