Refinancing Deduction

If you refinance, your mortgage interest tax deduction is different than previous years.

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Refinancing Deduction: the basics

Refinancing means you'll have a lower interest rate and a larger tax bill. Refinancing deductions may also be applicable.

Refinancing deductions: points from a rate-and-term

With this type of refinance, you can deduct a potion of the points paid to secure the loan.

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Refinancing Deduction: points from a cash out

For a cash out mortgage, the portion of funds used for home improvement determines how much you'll be able to deduct.


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Related IRS publications

For more information on home mortgage interest tax deduction check out IRS Publication 936

For a paper return, attach Schedule A with your return.

Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)