Are the points I pay on refinancing tax deductible?
UPDATED: May 2, 2012
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While the points paid on the closing of your primary residence from your taxes in the year you paid the points, those on refinancing or on the purchase of a second home or rental property are only tax deductible over the life of the mortgage. So if it costs you $3,000 in points when you refinance a 30-year mortgage on your home, you may only deduct $100 each year for the next 30 years. If you sell the home or decide to pay off the loan earlier, then the balance of your points is deductible in the year the loan is paid off.