New Client had refinanced. Looking at the Closing Disclosure statement Under the Origination Charges is listed .245% of loan amount (points) and right underneath that is listed Broker Compensation to John Doe and that amount is $6,627.38 which happens to equal 1.7% of the loan amount of $ 389,846. So Can I add that to the points, since it is a percentage of the loan. He refinanced with Quicken Loans.
POINTS on Refi & broker compensation fee ??
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Everything is a percentage of the loan. I doubt a commission can be considered prepaid interest. What does the 1098 list as points?"Taxation is the price we pay for failing to build a civilized society." ~ Mark Skousen -
Interesting scenario. I have a client who refinanced in 2021. Just got their tax records today. I may need to look around. . .further.
I agree with the comment made by Anarchrist.
Points on a refi have to be amortized over the life of the (new) loan or until that loan is paid off. I have no idea how the new and improved Form 1098 will handle that matter!
Please keep us updated.Comment
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New Client had refinanced. Looking at the Closing Disclosure statement Under the Origination Charges is listed .245% of loan amount (points) and right underneath that is listed Broker Compensation to John Doe and that amount is $6,627.38 which happens to equal 1.7% of the loan amount of $ 389,846. So Can I add that to the points, since it is a percentage of the loan. He refinanced with Quicken Loans.Comment
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Interesting scenario. I have a client who refinanced in 2021. Just got their tax records today. I may need to look around. . .further.
I agree with the comment made by Anarchrist.
Points on a refi have to be amortized over the life of the (new) loan or until that loan is paid off. I have no idea how the new and improved Form 1098 will handle that matter!
Please keep us updated.Comment
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ok.. I don't think it is prepaid interest. So in that case, NO. Thanks!!Comment
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