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posted May 31, 2019 7:07:25 PM

What if I assumed the loan?

I inheritted the house and assumed the loan after the death of my grandmother. I don't know anything about pay points.

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1 Best answer
Employee Tax Expert
May 31, 2019 7:07:27 PM

I’m sorry for the loss of your grandmother. Do you mean that you are making payments on a loan that is still in your grandmother’s name?

Most lenders do not allow a loan to be assumed. Are you legally obligated to pay the debt? This is one of the requirements to take a mortgage deduction.

Points refers to a fee paid to your lender for a reduced interest rate. A point is equal to 1% of the mortgage amount. Assuming this is not a new loan for you, there would be no points to record. See below link.

Deducting Mortgage Interest

1 Replies
Employee Tax Expert
May 31, 2019 7:07:27 PM

I’m sorry for the loss of your grandmother. Do you mean that you are making payments on a loan that is still in your grandmother’s name?

Most lenders do not allow a loan to be assumed. Are you legally obligated to pay the debt? This is one of the requirements to take a mortgage deduction.

Points refers to a fee paid to your lender for a reduced interest rate. A point is equal to 1% of the mortgage amount. Assuming this is not a new loan for you, there would be no points to record. See below link.

Deducting Mortgage Interest