Are Points Paid
for Home Mortgage Refinance Deductible?
Generally, points
paid to refinance your home are not all deductible in the
year paid. They are "amortized," which means, they
are deducted over the life of the loan.
If your mortgage
ends early, for example, if you refinance again with a different
lender or if you prepay the balance of the loan, then you
are allowed deduct the remaining balance of the points in
the year the mortgage ends.
For more information,
refer to IRS Publication 936, Home
Mortgage Interest Deduction, and IRS Tax Topic 504,
Home
Mortgage Points.
Related topic:
How much of my home mortgage
interest is deductible?
This
material is provided for general and educational purposes
only, and is not intended to provide legal, tax or investment
advice. Individuals who wish to invest in retirement plans
should contact their tax and financial advisors regarding
their specific legal or tax situation.
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