On March 31, 2014, Mary borrowed $200,000 to buy her principal residence. Mary paid 3 points to reduce her interest rate from 6 percent to 5 percent. The loan is for a 30-year period. What is Mary's 2014 deduction for her points paid?

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Points paid on a mortgage for a principal residence are generally deductible in the year they are paid. Mary paid 3 points on a $200,000 loan, which equals $6,000 (3% of $200,000).

On March 31, 2014, Mary Borrowed $200,000 to Buy Her