A point is interest that has been pre-paid in an effort to "buy down"
the fixed interest imposed on a mortgage.
One point is 1% of your mortgage, and can usually lower your interest
by .25%.
In a property SALE (not refinance), if Points are Paid by the Buyer,
The Buyer Must:
For Personal Property - Deduct all points as mortgage interest on
Schedule A
For Rental Property - Deduct points over the life of the loan on
Schedule E
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