Seller financed fees

[RileyRocks-]

When seller financed loan origination fees are included in your refinanced mortgage can they still be considered deductible since we are actually paying them by including them in the loan.

[MichaelDC · Accepted solution]

Yes. The origination fee on your refinance is “points” or interest that you paid up-front to secure your financing. Points or up-front interest is deductible. If it's spread over the life of the loan and included in your loan which is what's happening here, it's still interest and still deductible.

On a refinance your origination fees are paid up front and deducted ratably over the life of the new loan. The “points’ may not be included in your Form 1098 but can be declared to the program and amortized.

Please feel free to post any additional details or questions in the comment section.