This is a question for a CPA or whoever does your taxes.We encourage you to follow up with a professional tax advisor. There are certain limits and restrictions that do not affect most people, but this is another reason you should contact a tax professional with your questions.Briefly, assuming you itemize your deductions, own and occupy the home, you can deduct both property taxes paid on the home and interest paid on your mortgage.You can deduct the points and prepaid interest you make during the actual purchase, whether you pay them or the seller pays them on your behalf.