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If I pay .5 points for a 15 month lock, is it tax deductible?

Started by Junkman
over 17 years ago
Posts: 288
Member since: Jun 2008
Discussion about
I believe it is but don't want to assume anything before I sign the lock tomorrow. If points, in this case .5 points, are a percentage of the total mortgage amount it should be tax deductible right? And if tax deductible, it is deductible in the year it was paid, right?
Response by johnrealestate1
over 17 years ago
Posts: 131
Member since: Jul 2008

Not a tax expert, but I BELIEVE points paid for a purchase are deductible in the year thay are paid. Points paid on a refinance - I believe - have to be amortized over the period of the mortgage. And if there is a rate lock fee, that is - to repeat, I believe, NOT deductible.

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Response by shong
over 17 years ago
Posts: 616
Member since: Apr 2008

I believe it is. May I ask what the terms of the 15 month lock is? Does it offer free float down? Can the rate increase? Is it for a Fixed or ARM? Are you getting this from Countrywide?sunny_hong@countrywide.com

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