Recently my friend and fellow blogster, Brian Brady penned a very important article regarding purchasing a home with a large down payment and what the tax implications could be if one refinances later to pull cash out. In the post he says:
"How often have you been involved in a real estate transaction and decided to put down a large down payment just to "get the deal done"? After all, you're a good risk and expect to get a loan whenever you want it. You'll just refinance the loan later and "pull cash out"
It would be easy for me to shake my head and suggest that you are getting poor financial advice...that would be easy. You might be violating the tax code if you deducted that interest from the larger loan if you took it out after 90 days from the close of escrow. AND...you probably got away with it...up until next year."
This is VERY IMPORTANT information to pass on to others in our industry and this is my small part in virally doing so.