@dts002 wrote:
And then for every subsequent year when I fill out my tax return, I'll be able to continue to deduct the points that I paid on my previous two mortgage refis?
I think the answer is yes but the question is worded a little oddly.
Suppose you refinanced in 2020 with bank A and paid $3000 in points, it was a 30 year loan, and you did not use the money for improvements. We'll say you refinanced in June. On your 2020 return, you would deduct $8.33 per month for each month that you made payments, added to the regular mortgage interest you paid. ($41.65).
Then in 2021, you refinanced with the same lender, and paid another $3000 in points. We'll say June again. You still deduct $8.33 per month for the months you were paying the old loan ($41.65). Then starting with the refinance date, you roll up the remaining old points ($2916.70) plus the new points, and deduct that new amount ($5916.70) spread out over 360 payments ($16.44 per month).
You can continue to deduct your points as additional mortgage interest for as long as you keep those loans, or until Congress changes the law (probably not but you never know).
Hopefully, Turbotax will figure this out for you but I would not take it for granted. I would verify the numbers and keep your own records.
