I need to add the following. You don't have to live in the home for it to be your main home. However, there are other rules that need to be followed in order to deduct the full amount of points in the year paid. The biggest test you have to meet is providing some funding when getting the loan. Pub 936:The funds you provided do not have to be applied to the points. They can include a down payment, an escrow deposit, earnest money, and other funds you paid before closing for any purpose. You cannot have borrowed these funds from your lender or mortgage broker.
You may find it helpful to go on IRS.gov, select Help, and select the Interactive Tax Assistant (ITA). Scroll down and select 'Can I deduct mortgage-related expenses?' under 'Deductions'. When asked what type of mortgage related expenses, select points.
