Broker Fees vs Points

[pmedders]

I was under the impression that "broker fees" on mortgage settlement statements were not deductible as points; only points, loan origination fees, loan discounts, discount points, etc were deductible. However, I have a loan document that states "broker fees" and the mortgage company shows that amount as points paid on 1098. Have I been missing something all this time????

[jainen]

Doesn't matter

Doesn't matter what it's called. If it represents the income potential of the loan and is calculated as a percentage of the loan, it is deductible as points.

[pmedders]

With all the

different terminology used on the settlement statements, how do you determine which fees are based on the percentage of loan if not noted on the loan document??