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Are origination fees and points going to be deductible under the new tax law in 2018 for mortgage refinances on a primary residence?

 
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2 Replies
Carl
Level 15

Are origination fees and points going to be deductible under the new tax law in 2018 for mortgage refinances on a primary residence?

Yes. You don't run into any limits unless the outstanding balance on the loan is greater than $750,000

Are origination fees and points going to be deductible under the new tax law in 2018 for mortgage refinances on a primary residence?

"Points" qualify as mortgage interest, and can be deducted as a lump sum or over the life of the loan, depending on several factors. The new tax law does not change that basic fact, although it does say that mortgage interest deduction is limited to a loan balance of $750,000 for new loans made after 1/1/18.

MIP/PMI private mortgage insurance is currently not deductible for 2018, that deduction was only extended to the end of 2017. Congress might or might not extend it again but there's no telling when that might happen.

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