Second Mortgage

So the tax deduction on your mortgage payments or the tax waiver for profits after you sell a home?

In some states profits from the the sales of your home can be waived of taxes up to a certain amount if you live there long enough. This has nothing to do with tax deduction.

Any home where you pay a mortgage the interest is tax deductible.

Secondly first time home buyers doesn’t really matter in most cases, rates and rules usallly applies in relationship to primary residences, second homes, or investment homes.

Best suggestion is to talk to your local accountant in terms of taxation for the sales of your home, in some states a timely sales and repurchase of another home can prevent you from having to pay taxes for the sales of your home.

Even ask a realtor, they will know which is the best idea. Always check out rates to make sure you are getting the best deal. BofA is currently offering some great prices for mortgages, check them out first.

Mortgage Interest is deductible regardless of it being your 1st or 10th home. There are some programs out there for first time home buyers that limit you to not having owned a home for several years, and that may be what your friend was thinking of.

When you file taxes, bring the HUD Settlement statement for any mtg transactions for that year (purchase or refi) and the tax professional may be able to find additional deductions. The HUD is the statement that lists all the fees of that transaction (points, atty fees, etc)