About Tax Deductions for a Mortgage

Home Mortgage Interest

• You can deduct the interest on a secured home loan, including a home equity loan, home improvement loan, or first or second mortgage.
  
  

Points

• Typically, you can deduct points paid at closing over the life of the mortgage. If you qualify, you may be able to deduct all points paid in the year paid.
  
  

First-Time Homebuyer Credit

• If this is your first mortgage, you may qualify for a one-time credit of $7500 or 10 percent of the purchase price of your home. For homes bought after January 1, 2009, the credit is $8000 and does not have to be repaid.
  
  

Mortgage Insurance Premiums

• You can deduct premiums paid on mortgage insurance.
  
  

Property Taxes

• You can deduct your property taxes. For the purchase year, you and the seller divide the property taxes by sale date.