Lender Credits and Mortgage Deduction

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archbish99
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Joined: Fri Jun 10, 2011 6:02 pm

Lender Credits and Mortgage Deduction

Post by archbish99 »

We moved this year, and on one of our mortgages, we received a lender credit. I know that points paid can be counted as interest (subject to circumstances, which I believe apply); do lender credits, being negative points, reduce the amount of the interest we paid? Or are they not considered at all when calculating the mortgage interest deduction?
I'm not a financial advisor, I just play one on the Internet.
seawolf21
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Re: Lender Credits and Mortgage Deduction

Post by seawolf21 »

I don’t think so because you are paying a higher interest rate for the credit.
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ray.james
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Re: Lender Credits and Mortgage Deduction

Post by ray.james »

Credits are quite similar to credit card cashback. No reduction in tax deduction.
When in doubt, http://www.bogleheads.org/forum/viewtopic.php?f=1&t=79939
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archbish99
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Re: Lender Credits and Mortgage Deduction

Post by archbish99 »

Beautiful - thank you!
I'm not a financial advisor, I just play one on the Internet.
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