The IRS rules changed a few years ago, and if you took advantage of the lower rates offered earlier this year, you might need to make sure you did not overlook a large deduction.

When you refinance, the IRS requires you to amortize the points over the life of the loan. However, if you have refinanced a second, third, etc., time, you need to recapture the unused portion of the points that have not been amortized and deducted yet.

For you real estate and mortgage professionals, this is a perfect item follow up with your clients about. Follow up after the closing is a primary key to future business and referrals.

Home owners shouldn't overlook this deduction.

As in all cases, this is not tax advice. You are instructed to consult your tax advisor, CPA, or attorney for professional tax advice. However, this is a deduction that is often overlooked unless borrowers are aware of it and ask to see if it applies to them. Because it is so easy to overlook, the members of the E. Ching Enterprises' Mortgage Development Group Division thought a handy reminder may be of use.

Tip brought to you by:

E. Ching Enterprises
MDG Group
Box 39
1441 Piikoi St., Suite 504
Honolulu, HI 96822