Question: I refinanced my home mortgage this year. Can I write off the loan costs?
Answer: If you refinanced to consolidate your debts or to obtain a lower interest rate, you must amortize (write off) the points over the term of your loan. However, to the extent you used the loan proceeds to make improvements to your home, you can write off that portion of points this year.
If you’ve been amortizing points on a previous mortgage, you can write off the remaining balance of points in the year the loan is paid off.