Lender Credits and Mortgage Deduction
- archbish99
- Posts: 1649
- Joined: Fri Jun 10, 2011 6:02 pm
Lender Credits and Mortgage Deduction
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.
Re: Lender Credits and Mortgage Deduction
I don’t think so because you are paying a higher interest rate for the credit.
Re: Lender Credits and Mortgage Deduction
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
- archbish99
- Posts: 1649
- Joined: Fri Jun 10, 2011 6:02 pm
Re: Lender Credits and Mortgage Deduction
Beautiful - thank you!
I'm not a financial advisor, I just play one on the Internet.