[quote=SK in CV]Debt incurred within 90 days of acquisistion of a personal residence can be considered qualified home mortgage debt if it meets all the other requirements. There is no “registration”. Borrow the money, and get the security interest recorded within 90 days of the purchase and you’re good to go.[/quote]
SK – I have a question…
Is it only qualified home mortgage debt if you finance within the first 3 months? What about people who are serial refinancers (cough cough FLU cough cough xboxboy cough.)
Lets say someone starts out with a home purchased for 100k, financed for 80k. Appreciation happens and this person refinances w/ cash out – at 300k… rinse and repeat…. They can still deduct the mortgage interest…?
But another person scrapes together 100k in cash – lets say borrowing from their 401k, or family – to make their all-cash offer sweet enough to beat out other buyers. We all hear about how cash offers are king. They get the house – but don’t finance it till 120 days (more than the 90 days)… At that point they take out an 80k loan. Isn’t their mortgage just as deductable?
The first person extracted money from the house – more than the original purchase price. Yet the interest is still deductable. The second person did not extract the money – just paid back the nice folks who lent them money to make a cash offer.
