Deductions & credits

Origination fees can be deducted as points if they are a percentage of the loan amount (not a percentage of the sales price and not a flat fee) and if they are not allocated to any specific purpose, such as document processing, appraisal, survey, or anything else.)

For example, my mortgage had a $500 application fee.  That was not deductible points because it was not a percentage of the mortgage amount.