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We are getting close to locking our loan interest rate on a home we are building. We are trying to determine if it makes sense to buy down the interest rate or not. So far, it's not, but that could change if the points we'd have to pay are tax deductible along with the rest of the mortgage interest.

So, are points paid at closing to buy down the loan's interest rate deductible? Also, if we opt not to deduct them this year (2011), can we defer taking the deduction until 2012's taxes when we'll more likely be able to deduct the full year's mortgage interest?

Thank you.

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