Are home refinancing fees deductible?
On One Hand: Yes, Some Fees Are DeductibleAny pre-paid mortgage interest, discount points and pre-paid property tax payments paid on your mortgage refinance are tax deductible on your next year’s tax returns. A discount point is a fee paid to a lender to reduce your mortgage interest rate to lower than the available market rate. These fees are itemized on the HUD statement given to the borrower at the mortgage refinance closing–you will need that paperwork to receive the deduction.On the Other: Most Fees Are Not DeductibleHowever, none of the other fees associated with a mortgage refinance are tax deductible. Additionally, a borrower may or may not pay any of the above fees. If pre-payment of taxes or interest are not required and discount points are not purchased, there are no items that a borrower can deduct from his taxes due to a mortgage refinance.Bottom LineSome mortgage fees are tax deductible, some are not.
