Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Path: utzoo!watmath!clyde!burl!ulysses!bellcore!decvax!ittatc!dcdwest!sdcsvax!ncr-sd!hp-sdd!hplabs!qantel!lll-lcc!lll-crg!seismo!rochester!kodak!suhina
From: suhina@kodak.UUCP (brian suhina)
Newsgroups: net.taxes
Subject: Re: Home refinancing
Message-ID: <248@kodak.UUCP>
Date: Fri, 7-Mar-86 08:58:05 EST
Article-I.D.: kodak.248
Posted: Fri Mar  7 08:58:05 1986
Date-Received: Tue, 11-Mar-86 00:23:58 EST
References: <102@lambda.UUCP>
Organization: Eastman Kodak Co., Rochester, NY
Lines: 22

> Does anyone out there know anything about refinancing a mortgage?
> Could someone summarized the 3% rule argument (refinance if the interest
> rate is three percent lower than your current rate)?
> 
> It seems to me that it would take more than a 3% difference in interest rates
> to breakeven in three years, especially with the high closing
> costs that are apparent today.
> Also what closing costs that were paid on the initial purchase
> would not have to paid with refinancing (e.g., homeowners prepayment
> and 3 months of property taxes)?
> Also,
> can the refinancing points be written off the first year (i.e.,
> not IRS objection if audited)?
> 
> Thanks
> Sandy
I heard that the points paid when refinancing are NOT deductable from your
income taxes. The reasoning given was you were not buying anything, just
refinancing. Still I thought points were interest whenever you paid them
and interest is deductable. Can anyone clarify the points issue?

Brian Suhina