I refinanced my mortgage in July 2020; I did not have any points on the loan. But on the Closing Disclosure there was listed a in the "Loan Costs" section a line was entered as "Origination Fee". So I am confused, I thought only points paid were deductible; but every thing keeps saying points(origination fees). So is the amount labeled on my Closing Disclosure as "Origination Fee" deductible or not?
points paid to refinance a mortgage must be amortized over the life of the new loan unless the proceeds are used to substantially improve the main residence.
also if you refi with the old lender any remaining unamortized points on the old mortgage must be amortized over the life of the new mortgage
Thank you very much for your replies, it is much appreciated that you took the time to reply! But I have another question:
Can I deduct /amortize that amount even though the lender did not list the origination fee amount that was on the closing statement on the 1098, box 6 that they sent to me? Their 1098 shows 0 in box 6, which indicates it is for "Points paid on purchase of principal residence".