Homeowners should be aware of the tax deductions allowed by the IRS resulting from the loan origination process. This blog post highlights some of the appropriate deductions you should discuss with your tax advisor.
Points are sometimes referred to as “loan discounts” or “loan origination fees” and they represent money which the buyer must pay to the lender. Points are not usually included in the total loan amount and are usually paid by the buyer in cash at closing. One point equals 1% of the total mortgage amount. If the total amount of the loan is $350,000, one point on a loan of that size would be $3,500. The amount the buyer pays for points can be deducted in full in the year they are paid.
Most of us live in several different homes over our
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