To help you sort through that pile of paperwork and ensure you’re saving as much money as possible, here is some research into tax benefits that can come from buying.
What Are Points?
Points are essentially prepaid interest that you offer upfront at closing to improve the rate on your mortgage. The more points you pay, the better deal you get.
Deducting Points!
You can deduct points in the year you pay them if you meet certain criteria. Points must be paid on a loan secured by your main home, and that loan must be to purchase or build your main home.
[ Smart Tip ]
Points that you pay must also be within the range of what’s expected where you live — unusual transactions may cause you to lose the deduction.
Comments