On April 1, year 1, Mary borrowed $310,000 to refinance the original mortgage on her principal residence. Mary paid 2 points to reduce her interest rate from 8 percent to 7 percent. The loan is for a 30-year period. How much can Mary deduct in year 1 for her points paid?

$240.

$180.

$5,400.

$7,200.

Answer rating: 100% (QA)

Compute the amount to be deducted by person M in year 1 a... View the full answer