Construction Loan time period extension bank fee?

[jfair1962]

I had a home construction loan I took out in June of 2022.  The loan was to convert to a mortgage on completion of the house.  But also the home had to be finished by June 2023.  The home wasn't finished and moved into until August 2023.  In order to keep the current loan the bank charged us a fee to extend the loan for 2 months.  the fee was .25% of the loan amount per month.  I assumed this was points, but the bank didn't include this amount on the 1098 as points or interest.  The bank said it was a bank fee to extend the period of time to convert it to a final mortgage.  My question, can this fee be deducted on my taxes?  I would think this would fall in the realm of points?

[DavidD66]

I think you;re fine reporting it as additional interest or entering it as points.  I would call interest, not points myself.