Are re-finance costs deductible?

[lwcantrell]

Are re-finance closing costs, cash to close and appraisal fees deductible?

[DawnC · Accepted solution]

If you are refinancing a personal use home (not a rental property) - no, those cost are not deductible.

Generally, when you refinance your main home or a second home for personal use (such as vacation property or a cabin), you can only deduct points over the life of the loan. You'll need to take the itemized deduction.

Mortgage interest, real estate taxes, and private mortgage insurance may also be deductible if you itemize.   Other typical closing costs on a refinance (appraisals, underwriter, attorney, bank fees, title search, etc.) are not deductible.

Now, if you refinanced rental property, there's a lot more you can deduct.