Mortgage points may be deductible in the year paid when specific requirements are met. In other circumstances, including many refinancing situations, costs may need to be spread over the loan term.

Closing costs are not all points or interest. Review the closing disclosure line by line instead of treating the entire settlement amount as a deduction.

Your next steps

• Keep the closing disclosure.
• Separate points from other fees.
• Review the correct timing of any deduction.

General education, not individualized tax or legal advice. Illustrations use stated assumptions and do not promise a refund or tax saving.