Thursday, December 9, 2010

Deductible Refinancing Costs


I was wondering if refinancing a mortgage loan - points, appraisal fee, broker fee, escrow fee. are those deductible?


Justin --

Non-finance charge costs when refinancing are added to the cost-basis of your home.

Finance charges -- "points" -- are amortized as a mortgage interest expense over the life of the loan.

For instance, a 30 year mortgage refi taking place on January 2 with $3,000 in points gets a $100 [3000/30] mortgage interest deduction per year.

-- June

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