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

Published: April 14, 1998

Use of this article without permission is a violation of federal copyright laws.

Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.