Mortgage Software Solutions Blog

It's Tax Time! Refi's to Short Sales, mortgage deductions to consider

Posted by Chris Schwartz-Edmisten on April 2, 2012

Access Business Technologies hosts Mortgage Servicing Software for some of the largest Credit Unions in the country. It's "Tax Time" again and we don't want your members to miss out on their mortgage deductions. Some tax deductions to consider are those relating to the purchase of a home, refinancing an existing loan, an existing mortgage, or a short sale.  This article is written for them.

Purchasing of a home.  At closing you will receive a HUD-1 statement, also referred to as the closing statement. This statement should show all the money that you have spent in relation to the purchase of the home and the allocation of the money spent.  In most cases, there will be a small amount of property tax that you have paid, this is a tax deductible expense.  You will also see mortgage loan origination fees and Points on the HUD-1.  These are also tax deductible expenses.  What is a mortgage loan origination fee?  This fee is the administrative costs associated with getting the loan, such as fees paid to attorneys, notary public fees, and the preparation costs.  Are you wondering what a point is?  Points are the upfront fees that equal one percent of the loan.  Points can lower your mortgage interest rate.  Remember, don't miss out on your mortgage deductions this year.

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Topics: Tax Time, Mortgage Deductions, Refinancing, Short Sales