I refinanced my home but was required to bring extra money to closing as my old mortgage balance was higher than my new one due to loan-to-value. Can I deduct the principal I paid down on old mortgage in order to refinance to new bank?
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1 Replies
MichaelL1
Level 15
May 31, 2019 11:41:47 PM
The principal you paid as a down payment is not deductible expense for tax purposes.
On a purchase or re-finance what counts for taxes are: interest paid, points (if any) property taxes, and mortgage premium insurance (MPI).