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, or bank fees, title search, etc.) are not deductible.
We'll ask about your refinancing
expenses when you go through the "Your Home" area in the Deductions
& Credits section.
Now, if you refinanced rental property, there's a lot more you can
deduct. Read more