Are pre-payment penalties from refinancing my home tax deductible?
449665
MOST of the time they are deductible. \n\nThe rule is if they are a percentage then they are interest and are deductible.\n\nBut a far more important question is can the company charge them. Many states have written laws that prevent the companies from legally charging prepayment penalties. The problem is that many of the companies just go ahead and charge them anyway knowing that may people will never check  out if they are allowed to collect them.\n\nI had a client here in Wichita where I maintain a tax office come in last year after being charged a prepayment fee by Beneficial Finance wanting to know the same thing. When I told them to contact the Kansas Attorney Generals office because they weren't allowed to collect such fees anymore in Kansas I think that they though I was crazy.\n\nBut they took my advice and wrote them and within one week they had a letter from the Kansas Attorney Generals office saying that they had contacted Beneficial and ordered them to repay the prepayment fee. Of course they were elated.\n\nTo make a long story short the customer got back over $4800 within 10 days of contacting the Attorney Generals office. Just because they say they have the right to collect a prepayment fee doesn't mean they do.\n\nSo contact your State Attorney Generals Office and be sure they even had the right to charge you a prepayment fee. If they did then most like it's deductible. \n\nLet me know the details and I'll research it for you.
811036
There is a possibility you can refinance to a fixed rate. But, it will still  be a pretty high one, unfortunately. It will depend on equity you have in the home and your credit grade. If you want to see about it, drop me a note - hall442@yahoo.com.\n\nPeace.
182078
Here's the beginning of the answer:  "The only settlement or closing costs you can deduct are home mortgage interest and certain real estate taxes. You deduct them in the year you buy your home if you itemize your deductions. You can add certain other settlement or closing costs to the basis of your home."\n\nThat comes from IRS Publication 530; you can look over the whole document at the link below.  It has more complete explanations.
1018559
Depends on credit score, many lenders will do it, they will just make you pay the behind amount from the refi amount/cash out amount.
389609
County Tax Assessors do not rely on appraisals nor current values to determine your tax basis.  The lenders rely on this information in order to gage the extent of the loan amount.  If your home is being taxed on a value of $200K, any increase to that amount will determine a new base.  If you're re-financing rate and term, your first mortgage shouldn't increase much, so there will be very little increase in taxes.  However, if you're cash-out refi-ing lets say, $200K more, your new base will be $400K.  I know as fact that HELOCS do increase your base because this second is recorded and its addition to your value is obvious. (Even if you don't draw from your line!) Appraising is not an exact science and we all would challenge anything Mr. Tax collector told us to be value.
872943
The only thing you can deduct from your tax is probably your mortgage interest. Individual items in the closing statement may be deductible when you sell the house.
118828
Well you should ask first of all for a good faith estimate from each lender, to see which one of the is giving you a better deal. You also need to know if they're giving you a pre-payment penalty, If so for how long. (average pre-pay is about 2 years, unless you have really bad credit) If you have Excellent credit you shouldn't get a pre-payment penalty. thae situation varies depending on your Fico Score. Also Find out how many points they're charging you up Front and if they're getting anything back form the lender after close of escrow. All this matters because. Also if you're financing 2 new loans make sure that they're Fixed, so that your monthly payment doesn't change every month. Also HELOC's loan interest rates change every month, and the rate is going up, which means that your payment will also go up.  So be very careful about this.
409643
Property taxes and mortgage interest payments are tax deductible. If you have an office in your house that meets the federal requirements (discuss with your accountant), you can figure out the square footage of the office compared with the total square footage of the home and you can take that percentage of the cost of utilities, repairs, etc. off your taxes.
902580
No, there's a special law to allow deduction of home mortgage interest, but it doesn't allow you to deduct other personal interest like car payments or leases, unless you have a business and the car is used for your business.
1072256
The answer is yes you can BUT the reality is that it is hard to find a lender that will refinance your loan knowing that at any minute your home could be sold and they will waiste their time and money. Most lenders will ask you to take the home off the market before you can refinance.\n\nGood luck!
193792
Possibly because you haven't been paying the minimum interest payments. I know on my interest only mortgage, they allow me to do this without penalty, essentially increasing my principle each month. They actually highlight an amount on my statement that is less than my interest, trying to trick me into paying less today. It's all part of the scam. Read your statement carefully and pay more than just the interest due.
751744
You could do it immediately as long as your current mortgagor allows it and you're willing to pay any fees, penalties, etc.  \n\nNow's the time to read the fine print on your mortgage if you haven't already, because that's where you'll find the correct answer, not here on Yahoo Answers.
31614
The following expenses may be tax-deductible, depending on the particulars of your tax situation. Buying a home is a great time to visit a tax professional, just to make sure you are keeping track of all your deductible expenses.\n\n* Pre-paid mortgage interest (also called "points") shown on your closing statement.\n* Pre-paid real estate taxes shown on your closing statement.\n* Regularly paid mortgage interest (reported to you by your bank on Form 1098).\n* Regularly paid real estate taxes (reported to you on the tax bill from your County's Assessor).\n\nWilliam Perez\ntaxes.about.com
384615
The easiest way to avoid the prepay penalty is to sell the home.\n\nHowever, if you're upside down in the property, i.e., the home is worth less than what you owe, then, some states have antideficiency statutes which prevent a lender from collecting any additional money from a borrower who defaults on a home loan. If you are in one of those jurisdictions, and your home's equity is maxed out, so you can't get any more out of a sale or refi, then you could just call the lender and ask to waive the prepayment penalty, and that if the lender refuses, you'll just walk away from the property and they will be stuck with the loss.\n\nOf course this will also ruin your credit rating for the next seven years, so it's far better to just sell the property and move on, if you can afford to do so.
279926
If you are non a schedule A you can take all of the mortgage interest. You can take property tax that you pd. Any donations you gave (cash and non cash)Sales tax that you pd on any big purchases(use the table for the rest)I don't know what your filing status is so I don't know if you would even be close.
499661
How much cash you can get out depends what the property is presently worth.  There's nothing to stop you from refinancing any mortgage even the day after you take the loan, but some loans have pre-payment penalties that make it ineffective to do so.  If the goal is just to get cash out and the value supports it, a 2nd mortgage or Home Equity Line of Credit avoids a pre-pay penalty and has less costs than a full-fledged refinance.
63484
It depends on when your ARM's fixed interest rate period is set to expire.  As a mortgage professional I always recommend that my clients refinance out of an ARM after the prepayment penalty period expires if there is one and when the initial low fixed rate period is over.  If you're credit is in good shape you may qualify for a similar rate on a 30 year fixed mortgage.