Are mortgage points tax deductible?

Yes, but treatment differs. Purchase: deduct in year paid. Refinance: amortize over loan term. Investment property: amortize regardless.

Mortgage discount points are deductible but the timing rules vary by loan purpose. Primary residence purchase: discount points are deductible in full in the year paid, treated as interest paid in advance, subject to the same itemized deduction rules as regular mortgage interest. Primary residence refinance: points must be amortized over the loan term. Example: $4,000 in points on a 30-year refi = $4,000 / 360 months = $11.11 deduction per month, $133 per year. If you refinance again before the original loan term ends, the unamortized points become deductible in the year of the second refinance. Second home purchase or refinance: points must be amortized over the loan term (the in-year deduction rule applies only to primary residence). Investment property: points amortize over the loan term in all cases (purchase or refi). On Schedule E. Origination fees vs. discount points: only true discount points (paying to reduce the rate) qualify. Origination fees that are simply lender service charges don't qualify as deductible interest - they're part of the cost basis. Lenders break this out on the Loan Estimate and Closing Disclosure.