Anyone here got the seller paid 2-1 temporary rate buydown and has figured out whether you can deduct the lump sum amount that the seller put in the escrow?

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That amount goes into an escrow account, and is a subsidy that you don’t touch. You can’t deduct what you don’t pay. Every year the loan servicer will send you a 1098 reporting what you’ll get to deduct in annual mortgage interest and potential points paid upfront. You’ll get to deduct more mortgage interest in the years after the 2-1 buydown period expires because the rate will be higher.

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