IRC 461(g) cited . Pub. 936

Refinance Points Amortization

Refi points spread out over the loan, unlike points on a home purchase. Here is your yearly write-off.

Points (and deductible loan fees) paid at refinance ($)

Loan term (years)

Your points write-off

Points paid

Loan term (months)

Deductible per month

Deductible per year

Total deducted over full term

Have our office track your points each year

On a refinance, points generally must be deducted ratably over the life of the loan, not in the year paid (IRC 461(g)(1), IRS Pub. 936). Points on the purchase of a main home can often be deducted in full the first year, a different rule. If you refinance again or pay the loan off early, the unamortized balance is generally deductible then. Estimates only. Phone 689-331-5723.