Question: I have a high-interest-rate loan and wish to refinance my property. The lender tells me that there is a penalty for early prepayment and a refinance charge to obtain a lower interest rate. Is that tax deductible?
Answer: You should contact your accountant. However, I understand that any payment you make for prepayment of your mortgage and any refinance charges are considered interest and tax deductible.
Q: Home sales and resales for the first quarter of this year have not increased dramatically, even though interest rates have dropped a great deal. Are there any reasons for this?
A: I think that there are probably three reasons.
In all probability, weather was a major factor. Here in Southern California, we had a great deal of rain, while other parts of the country also had inclement weather.