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Refinanced loans. What lenders fees are tax deductible?

On a refinance what lender fees are deductible? 

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Refinanced loans. What lenders fees are tax deductible?

For a refinance, mortgage interest paid (including origination fee or "points"), real estate taxes, and private mortgage insurance (subject to limits) are the only deductible fees.  Other costs are added to your basis in the property.

On a refinance, you may need to amortize an origination fee (if paid) over the life of the loan. TurboTax will walk you through this process.

Other closing costs, including the below are not tax deductible but may increase the cost basis of your home which may benefit you in the event of sale.

  • Attorney fees in connection with obtaining property

  • Commissions

  • State stamp taxes and transfer taxes

  • Tax service fees

  • Title policy fees or title insurance

  • Miscellaneous abstracts of title, surveys, recording of deed

  • Appraisal Fee

Enter the above expenses in the following areas:

  1. Mortgage interest paid: Federal Taxes>Deductions &Credits> Your Home, select Mortgage Interest, Refinancing, and Insurance

  2. Points (or Loan Origination Fee): Federal Taxes>Deductions &Credits> Your Home, select Mortgage Interest and Refinancing, and Insurance- (See Did you pay points in 2016 when you took out the loan?) page

  3. Real Estate Taxes: Federal Taxes>Deductions &Credits> Your Home>Property Taxes

  4. Mortgage Insurance: Federal Taxes>Deductions &Credits> Your Home> Mortgage Interest, Refinancing, and Insurance

Some of the above expenses may be designated on your HUD-1 settlement statement.


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New Member

Refinanced loans. What lenders fees are tax deductible?

For a refinance, mortgage interest paid (including origination fee or "points"), real estate taxes, and private mortgage insurance (subject to limits) are the only deductible fees.  Other costs are added to your basis in the property.

On a refinance, you may need to amortize an origination fee (if paid) over the life of the loan. TurboTax will walk you through this process.

Other closing costs, including the below are not tax deductible but may increase the cost basis of your home which may benefit you in the event of sale.

  • Attorney fees in connection with obtaining property

  • Commissions

  • State stamp taxes and transfer taxes

  • Tax service fees

  • Title policy fees or title insurance

  • Miscellaneous abstracts of title, surveys, recording of deed

  • Appraisal Fee

Enter the above expenses in the following areas:

  1. Mortgage interest paid: Federal Taxes>Deductions &Credits> Your Home, select Mortgage Interest, Refinancing, and Insurance

  2. Points (or Loan Origination Fee): Federal Taxes>Deductions &Credits> Your Home, select Mortgage Interest and Refinancing, and Insurance- (See Did you pay points in 2016 when you took out the loan?) page

  3. Real Estate Taxes: Federal Taxes>Deductions &Credits> Your Home>Property Taxes

  4. Mortgage Insurance: Federal Taxes>Deductions &Credits> Your Home> Mortgage Interest, Refinancing, and Insurance

Some of the above expenses may be designated on your HUD-1 settlement statement.


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Refinanced loans. What lenders fees are tax deductible?

I refinanced my mortgage on 10/29/19 and paid $7,600 in points (1.706% of loan amount).  Can I deduct this amount in full on line 8c of the 1040?   

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