Education

Points and origination charges are not the same thing. If they were, they'd be on the same line of the HUD-1. Points are prepaid interest (which gets you a lower interest rate for the life of the loan), reported to you on line 802 of the HUD-1 and also in box 2 of the 1098. An origination charge is a fee you pay to the lender for the service of creating/providing the loan, reported on line 801 of the HUD-1 and not included anywhere on the 1098.

Points are deductible because they're essentially equivalent to mortgage interest. Origination charges are not; that would be like deducting the appraisal fee or inspection fee.

Now, if your lender made a mistake and didn't include the points on line 802 or on the 1098, that's a different story. In your case, it's very clear that that's not what's going on. The points (2% of the loan) are deductible, the origination fee (0.75% of the loan) is not.