IS HOME MORTGAGE INTEREST DEDUCTIBLE?
Interest paid on a mortgage loan used to purchase, build or substantially improve either your home or a vacation home is tax deductible. Interest on a refinancing is tax deductible to the extent of the amount of the loan that was refinanced. In either case, the loan amount cannot exceed $ 1,000,000, Interest paid on a home equity loan is tax deductible provided the loan amount does not exceed $100,000. ARE POINTS DEDUCTIBLE? The IRS treats points as prepaid interest which is deductible in full provided the loan proceeds were used to purchase a principal residence. If the points are incurred with any other type of loan, including a second home or a refinancing, the points are deductible only over the life of the loan.
