Refinanced my house?

Azzie
If I refinanced my house last year to get cought up on my house payment am I able to claim that on my 2007 tax forms?

Fleta
You can only claim the interest you paid on your loans, but you can't claim the closing costs of the refinance if that's what you're asking.

Hisako
Claim what? You can claim interest and real estate taxes, just like you always could - not the refi costs though.

German
Providing you closed prior to December 31, you may deduct the interest on your tax return. If you also paid any delinquent real estate taxes, those are also deducted. One thing you might want to do is look at the closing settlement statement of the refinance papers. (also known as HUD statements--usually a 8 1/2 x 14 sheet of paper with lots of lines and numbers that shows how much you refinanced). Look at the paperwork and see if there are any figures in the loan origination, loan discount and/or points lines. (You might find them near the top of page 2 of the settlement statement). If there is an amount there, you can write off that amount over the life of the mortgage. If you are preparing your return by yourself, read the details on how to write off those figures. If you have a paid professional preparing you return, take this paperwork with you at the time of your appointment.Good luck to you!! You may write me directly should you have any further questions.

Chloe
If you paid points on the refinance, then the points are amortized over the life of the loan (30 years if it is a 30 year mortgage). Also, if the new mortgage is for more than the original mortgage (i.e. a cash out refinance), the interest related to the difference in the principal balances (the interest on the portion of the mortgage in excess of the original mortgage balance) is treated as an adjustment for AMT purposes.

Kermit
interest only