Home loan fees

Forum|Forum|6 years ago
March 3, 2020
1 reply
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What part of home loan costs besides points are deductible?

LeonardS

The following loan costs are generally deductible.

Sales tax issued at closing
Real estate taxes charged to you when you closed
Mortgage interest paid when cost was settled
Real estate taxes that were paid for by the mortgage lender
The interest you paid at the house’s purchase
Loan origination fees (a.k.a. “points”). These would be written as a percentage of the borrowed money.

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Teri F

I have a question - maybe you can help. I completed a loan modification in May 2019 with my current lender to get a better interest rate (4.25% to 3.5%) and to shorten the term of the loan (30 Yr Fixed to 15 Year Fixed). I paid a "modification fee" of 1% on the new principal balance. Is this tax deductible? Thank you.

LeonardS

Yes, the "modification" fee is prepaid interest on your mortgage and is deductible as interest paid on your mortgage. You will have to itemized your expenses to claim the deduction. If you take the standard deduction you will not be able to deduct the interest on your mortgage.

The standard deductions for 2019 are.