Special
Situations
This section describes certain items that can be included
as home mortgage interest and others that can't. It also describes certain
special situations that may affect your deduction.
Late payment charge on mortgage payment.
You can deduct as home mortgage
interest a late payment charge if it wasn't for a specific service performed in
connection with your mortgage loan.
Mortgage prepayment penalty.
If you pay off your home mortgage early, you may have to
pay a penalty. You can deduct that penalty as home mortgage interest provided
the penalty isn't for a specific service performed or cost incurred in
connection with your mortgage loan.
https://www.irs.gov/publications/p936
