That’s thanks to the Home Mortgage Interest Deduction, which lets you write off the interest you pay on your mortgage loan throughout the year.
What is the mortgage interest deduction?
The mortgage interest deduction is a type of itemized tax deduction that has been around in some form since a federal income tax was introduced in 1913.
Mortgage pointsMortgage points—an upfront fee you can pay at closing to lower your interest rate—are another form of mortgage interest, just prepaid.
Whether you should take the mortgage interest deduction comes down to the age-old question of itemizing vs. using the standard deduction.
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