Melinda bought a house in Seattle in January of 2022 for her primary residence. She paid $300,000 for the property, with a $30,000 down payment, and got a mortgage loan from WellsFargo Bank for the $270,000 balance of the purchase price. WellsFargo charged her one point on the loan - $2,700. She also paid closing costs totaling $3,000 ($1,000 for the appraisal, $1,500 for Title Insurance for the lender, and $500 for the escrow-closing fees). During the year, she also paid $9,000 in interest on the mortgage loan, and $5,000 in real estate taxes.

Is it True or False?

11. Melinda can claim the $1,500 title insurance cost on Schedule A for 2022. True/False

12. Melinda can claim the $2,700 in points expense on Schedule A for 2022. You may assume that points are a usual cost in the Seattle lending market. True/False