ReFi points rolled into new mortange

[DonB]

If ReFi points are rolled into a new mortgage (no money paid to lender at closing) they become part of the principal. Why shouldn't that part of the principal be deductible as interest. And, when the loan is paid off, why shouldn't the remaining points portion of the principal be deductible?

[taxea]

If ReFi points are rolled into a new mortgage (no money paid to lender at closing) they become part of the principal. Why shouldn't that part of the principal be deductible as interest. And, when the loan is paid off, why shouldn't the remaining points portion of the principal be deductible?

Because it is paid over the length of the loan and has to be amortized for that time and when the loan is paid off then the balance left can be deducted as interest in that year. you need to check the new rules on mortgage interest deduction to see whether this has changed.