Question by falsi fiable: When refinancing a mortgage, can you deduct BOTH buy-down points and origination fees?
I haven’t received a 1099 yet. I refinanced through CashCall but my loan was immediately sold to and is serviced by CitiBank. Should CashCall send a 1099 showing points paid?
When refinancing a mortgage I know you have to amortize fees over the life of the loan.Which fees are deductible besides buy-down points? TurboTax implies both points and loan origination fees. Is it both?
I already know about amortizing over the loan term. I just wasn’t sure about origination fees. I received a settlement statement but it does not show the 3-digit HUD line numbers found on a Reg Z form.
Anyhow, thanks for clarifying the origination FEES are considered points. I never knew that before.
Answer by MrMojo1
Upon a refinance of a mortgage, origination fees and points are both amortized over the life of the loan.
Only when you buy the house initially do you write off the points or origination fees but not when you refinance!!
FYI… Origination fees are considered points!
Give your answer to this question below!
You can write off the interest paid from the total loan amount. That being said, as long as the origination points aren’t paid out of pocket you can write them off. Ex: 200k needed to pay of existing lean and title/escrow charges plus 1 point in origination. Total loan amount being 202k which is the figure you can use when deducting your interest paid per year.