Refinance Post …

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Post subject: Discount Points in Refinance A Loan You can Refinance A Loan your existing loan with some discount points to get a lower interest rate. A portion of the loan paid should be deductible on that financial year and the balance must be deducted or amortized throughout the loan period. For example, Kathleen has a mortgage loan balance of $60,000. She decides to Refinance A Loan the original loan borrowing $80, 000 so that she has an additional $20,000 to conduct repair work on her principal residence. She paid $3,000 in points. Since, she actually paid the points so she will be allowed to deduct 25% of the total points (i.e, 25% of $3,000 = $ 750) in the year and the remaining $2,250 in points would be deducted (amortized) over the life of the loan.

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