I did a cash-out refinance loan in order to make home improvements. Because it's a re-fi for improvements that go back into the home, I'm allowed to deduct the points all in one year and not amortize over the life of the loan.
On the closing statement it shows three items for Loan Charges:
- Origination Fee $1595
- Discount Points -$1650
- Prepaid Interest $ 640
What is the amount I'm allowed to deduct when I'm asked for the Origination Fees? There is only one "box" to enter data, but several categories count as origination fees, so I assume there is some math involved.
Do I treat the negative discount points as a positive value when entering the Origination Fee for a value of $3245 or do I ignore the discount points ant put in $1595?
Do I include the prepaid interest with the Origination fees as well?
Thank you so much for your assistance.
