<p>We recently refinanced to get a better interest rate and to reduce the terms of the loan from 30 years (we had 27 years and one month left) to 15 years. I would like to shred the previous refinance papers. I would, of course, keep the papers from the original sale and the most recent refinance. Is there any reason to keep papers from the refinance three years ago? I hate hanging onto papers unnecessarily. Thanks!</p>
<p>Points are deductible on your taxes and you probably deducted this year the points you hadn’t already deducted in previous years. I’d keep that information. You’d want to keep the reconveyance also that shows that you’ve paid off the note. You could conceivably shred the long loan documents and other ancillary paperwork, but I’d keep anything that was recorded in the recorder’s office also.</p>
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Points on a mortgage for your personal residence are fully deductible in the year you take out the mortgage, so I’d be surprised if there was anything left to deduct from the first mortgage.</p>
<p>If you deducted anything related to the mortgage on your taxes, I would keep all the paperwork until 7 years after the the last tax year you made the deductions.</p>
<p>I keep all the papers from every refi I have done (probably close to 15 by now), I don’t see any compelling reason to get rid of them. They don’t take up that much room.</p>
<p>And I did have one case where the prior mortgage discharge wasn’t properly recorded after a refi, and when I refi’ed again it turned up. The original attorney and the bank were out of business though and it was a bit of a mess. It was helpful to have the original paperwork around.</p>
<p>Points on a refinance are not currently deductible on one’s tax return. They have to be amortized over time. Remaining points are deductible in full in the year a loan is re-amortized.</p>
<p>Well, darn. It wasn’t the answer I was looking for but you both sound like you know what you’re talking about so I’ll hang on to them. Thank you for replying!</p>
<p>deleted cuz I can’t read</p>
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<p>Right. The situation I was thinking about was one in which you are refinancing a refi.</p>