Patrick is a recently divorced single father and will be filing head of household and itemizes. As a result of the divorce from his husband he will need to refinance the mortgage on the home. The bank has offered Patrick the option of paying points on the mortgage in order to receive an annual interest rate reduction. Patrick will also make interest-only payments for the first four years. Patrick has asked you to produce a calculation to assist in determining whether or not paying points makes the most financial sense from a tax perspective. Patrick is a recently divorced single father and will be filing head of household and itemizes. As a result of the divorce from his husband he will need to refinance the mortgage on the home. The bank has offered Patrick the option of paying points on the mortgage in order to receive an annual interest rate reduction. Patrick will also make interest-only payments for the first four years. Patrick has asked you to produce a calculation to assist in determining whether or not paying points makes the most financial sense from a tax perspective