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this is my questions: On March 1, Paige took advantage of low interest rates and

ID: 2718797 • Letter: T

Question

this is my questions:

On March 1, Paige took advantage of low interest rates and refinanced her $75,000 home mortgage with her original lender. The new home loan is for 15 years. She paid $215 in closing costs and $1,500 in discount points (prepaid interest) to obtain the loan. The house is worth $155,000, and Paige's basis in the house is $90,000. As part of the refinancing arrangement, she also obtained a $10,000 home-equity loan. She used the proceeds from the home-equity loan to reduce the balance due on her credit cards. Paige received several Form 1098 statements from her bank for interest paid by her in the current year. Details appear below.

Primary home mortgage                $7,100

Home-equity loan                     435

Credit cards                               498

Car loan                                     390

Form 1098-Mortgage Interest Statement

Sunbelt Credit Union – Mortgage interest - $7,100

Northeast Bank – Home-equity loan interest - $43

these are points that I have to find

Interest Expenses Primary home mortgage Home-equity loan Credit cards Car loan Refinancing points

Explanation / Answer

Interest Expenses Primary home mortgage 7,100 Home-equity loan 435 (43 is I think wrongly given) Credit cards 498 Car loan 390 Refinancing points 1500 is prepaid interest Total 9,923