Thanks for your help on this. I'm actually wondering how to treat the non-points costs from the first loan, e.g., appraisal fees, lender's title insurance, etc.? Should I amortize them over the life of the loan, treating the amortization as a non-deductible cost while I lived in the home, but then deducting it after I convert the home to a rental? Or should I just ignore them completely? And if I amortize these costs from the original loan after the property was converted to rental, should I then deduct the remaining unamortized part as an expense in the year when I refinanced?
