I have a Form 1098 Mortgage Interest Statement on a reverse Mortgage dated 04/25/2007 that shows Points Credit in box 6 of $2700.00. Can anyone tell me what that means?

[HelenaC · Accepted solution]

Points – Mortgage points are an optional upfront fee that you can pay to get a discount on your loan interest rate. In exchange for paying points, the lender will charge a lower interest rate on your reverse mortgage.

Note: Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until you actually pay it, which is usually when you pay off the loan in full.” 

• There are still limitations, as the amount of interest claimed cannot exceed $100,000.