Discount factors can save you huge cash on a 30-year mortgage by decreasing the total curiosity you will need to pay across many years, but they will additionally prevent cash in your taxes whenever you buy them. The IRS considers mortgage factors to be pay as you go curiosity, so you possibly can add the amount paid for points to your whole mortgage interest that’s entered on Line eight of 1040 Schedule A. If you file married separately, you probably can deduct half these quantities — $375,000 or $500,000, respectively. Mortgage interest — or the quantity of curiosity you pay …