Finance
In New York, 'points' paid at closing on a mortgage are:
AAlways tax deductible in the year paid for all borrowers
BPrepaid interest, each point equaling 1% of the loan amount✓ Correct
CCharges imposed by the DOS
DNot allowed on conventional loans
Explanation
Mortgage points (discount points) represent prepaid interest, with each point equal to 1% of the loan amount. Points paid on a home purchase mortgage may be deductible for federal income tax purposes in the year paid.
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