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saltip
New Member

Mortgage lender sells loan - should I report it as payoff in TurboTax

I purchased a second home where I used the builder's mortgage company.  I paid a 1% discount point to buydown the interest rate which was approximately $4,000.  I settled on May 8, 2020 and the mortgage company sold the loan to Wells Fargo on May 17, 2020 (9 days later).  When I try to report the discount point in Turbotax, it asks me on whether I payed off the original loan with the builder or not.  How do I report this?

2 Replies
Opus 17
Level 15

Mortgage lender sells loan - should I report it as payoff in TurboTax

No, the fact that your loan was "sold" or transferred to another lender or investor is not the same as paying off the loan.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
vcedwards
Returning Member

Mortgage lender sells loan - should I report it as payoff in TurboTax

I had the same question.  TurboTax is asking for the value of the loan as of January 1, 2021.  Do I show the full value of the loan on that date for both the original lender and the current lender?  It won't let me show a zero for the value of the loan taken from the original lender.

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