Tax deductions6 of 7"Most settlement costs paid to the mortgage company, lender or broker are tax-deductible in the year in which you pay them," says Walbrun. If you close on or before Dec. 31, you may be able to deduct the interest on your first monthly mortgage payment from your taxable income. And, you may be able to deduct points paid to reduce your interest rate as well, says Buoni. Related Articles:10 steps to 'short-sale' buyingFind the right house for you7 steps to great foreclosure buy'Perfect' time to buy a homeRelated Links:15-year or 30-year mortgage?Fixed- or adjustable-rate mortgage?Rent or buy your next home?Estimate your FICO score – free! advertisement
"Most settlement costs paid to the mortgage company, lender or broker are tax-deductible in the year in which you pay them," says Walbrun. If you close on or before Dec. 31, you may be able to deduct the interest on your first monthly mortgage payment from your taxable income. And, you may be able to deduct points paid to reduce your interest rate as well, says Buoni.
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