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From: ellison@wanginst.UUCP (Mark Ellison)
Newsgroups: net.taxes
Subject: Re: Home refinancing
Message-ID: <1735@wanginst.UUCP>
Date: Thu, 13-Mar-86 22:20:17 EST
Article-I.D.: wanginst.1735
Posted: Thu Mar 13 22:20:17 1986
Date-Received: Sat, 15-Mar-86 20:25:42 EST
References: <102@lambda.UUCP> <248@kodak.UUCP>
Reply-To: ellison@wanginst.UUCP (Mark Ellison)
Organization: Wang Institute, Tyngsboro, Ma.  01879
Lines: 21
Summary:  the object is to lower monthly payments

The object of refinancing your current mortgage is to lower your monthly
payments.  I have no knowledge concerning income tax deduction of refinance
points, but a tax preperation service should answer correctly.

There are two points that are worth mentioning.  Points are paid for
*originating* a loan.  If the bank you financed your mortgage through
maintains the loan in its own portfolio rather than passing it on to a
secondary market, say Fannie-Mae or Freddie-Mac, you will not be originating
another loan, and therefore should not need to again pay points.  Variable
rate mortgages are more likely to be maintained by the originating bank
than fixed rate loans.  If the loan has been passed to a secondary market,
inquire into the possibility of including the points into the new loan amount.

Either way you're way ahead.  After all, the real objection is dropping
another four digit amount in order to refinance!

-- Mark
-- 
Mark Ellison                             ellison@wanginst        (Csnet)
Wang Institute of Graduate Studies       wanginst!ellison        (UUCP)
Tyng Road, Tyngsboro, MA 01879           (617) 649-9731