Hi,
I know generally you can deduct mortgage points, even if the seller paid them. What if the seller, or in my case lender, paid for a 1-0 buydown? They deposited about $6K in a separate account (not escrow), and applied $500 of it each month toward my interest payment -- reducing my interest rate by 1% for the first year. I was thinking this is essentially prepaid interest so it should be deductible, but it doesn't show up anywhere on the 1098, only the mortgage closing documents.
Thank you so much for your help!
