Yes, the "modification" fee is prepaid interest on your mortgage and is deductible as interest paid on your mortgage. You will have to itemized your expenses to claim the deduction. If you take the standard deduction you will not be able to deduct the interest on your mortgage.
The standard deductions for 2019 are.
- Single - $12,200 add $1,650 if age 65 or older add.
- Married Filing Separately - $12,200 add $1,300 if age 65 or older.
- Married Filing Jointly - $24,400 add $1,300 for each spouse age 65 or older.
- Head of Household - $18,350 add $1,650 if age 65 or older.
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