Federal tax planning - Consider paying points on your permanent loan when buying a new home. Points are deductible in the year they are paid when building a new home; if you refinance later, the points cannot be deducted currently. Planning idea: find an innovative lender that will finance the points on a new home, giving you a tax deduction this year and saving you cash now. Check with a knowledgeable attorney or CPA in your area to see if this strategy makes sense.

Federal tax planning - Buyer construction financing:	No Points Financing	3 Points Financing	Saving to Buyer
Purchase price	150,000	150,000
Interest Rate	7.250%	6.500%
Points	-	3
Monthly payment	1,023	948	75
Tax savings from points first year deduction (assumes 28% bracket)	-		1260

If the buyer pays the points, there is immediate cash benefit from
tax savings. Consult an attorney or CPA. Innovative lenders may finance points.