Posted by Jimbob on October 28, 1998 at 14:06:47:
Rob,
The interest on the second mortgage will be deductable up to 100% of the fair market value of the property, any mortgages that exceed 100% of the fair market value of the property, the interest is not deductable. Thats where a lot of people taking out those 125%LTV mortgages are going to get nailed.
As for the closing costs, the points paid usually have to be amortized over a 5 year period but you should check with a CPA in your area to make sure.
Jimbob