Hello All,
I own a rental property which is mortgaged for the amount equivalent
to ~30% of its market value, rest being equity. When I file taxes, I
deduct the interest paid on the mortgage from the rental income -
which is how it should be. I am planning to refinance the rental
property to get some equity in my pocket and increase the mortgaged
value of the property. Here are my questions
- If the rental loan is refinanced, it is allowed to use the increased
interest paid on the new loan (more amount financed) and continue to
deduct it as a rental expense?
- If I finance more than 80% of appraised value, we will pay PMI. Is
this PMI a deductible expense here?
- Can the points and closing cost paid for the refinanced loan be
deducted as an expense on the rental property?
Thanks in advance.
Olivia
