I have the original loan fees being divided between the amortization of the loan (origination fees and appraisal fees) and the other fees ie legal and title fees are depreciating with the cost basis of 27.5 years. When refinancing, what happens to these original fees/costs? You mentioned the previous fees are fully deductible when you refi with a different lender. Are these the origination fees and appraisal fees?
What about the new loan fees for title and attorney, etc -- where do they go? Are they amortized over the life of the loan or added to the cost basis?
