Are Mortgage Refinancing Fees Tax Deductible?
Mortgage loans often require closing costs from the borrowers. These fees pay for many required services, and provide compensation for the loan officer and mortgage company. Some mortgage fees are deductible while others are not. The IRS allows the deduction of mortgage interest from taxation. Some closing costs are deductible because the IRS considers them pre-paid interest. Deduction of mortgage closing costs is different if your loan is a refinance rather than a purchase.
