Please select the type of loan you will be analyzing. This choice impacts the calculations for the "after-tax" analysis. Loan points are treated differently for refinancing of residential loans and for commercial loans than for residential loans made at time of initial acquisition. By making the correct selection on this screen you will indicate to the program how you want points to be treated for tax purposes.

Points paid on a loan at time of initial acquisition are normally fully deductible in the year paid. Points paid on a refinance or a commercial loan, while paid at closing, must be deducted ratably ("amortized") over the life of the loan or the "due and payable in full" term. Any undeducted ("unamortized") points may be deducted in full in the year of disposition or refinance.

IMPORTANT: If the loan terms require the loan to be "due and payable in full" sooner than the full amortization term you must indicate this on the right side of the input form. For example, if the loan has a 30 year amortization period but is "due and payable in full" in 15 years, you would make the following entry on the right side of the input form. "In month #" 180 (15 years times 12 months/year) "Pay off loan in full".

Type of loan: (Click on button in front of correct loan type)