Are upfront points and MIP deductible?

[wikiwiki]

We bought a new construction home this year using an FHA loan. We paid a 1.5% MIP premium upfront as part of the closing costs, as well as 1 point to the lender. We are filing jointly and under the 100k income mark.

I believe the 1 point is fully deductible on Schedule A

Is the full amount of the upfront MIP deductible, or do we have to amortize it over 84 months? (I've read that in a few places too)

[mortgage-wiz]

Yes, you can take a "zero cost" mortgage than the points are calculated inside and the intrest rate goes up.
Check the web calculators to see if the point $$$ cost = the raise in mortgage payment throughout the years before you agree!