Mortgage Points Deduction — Tax Deduction Guide 2026
Deduct mortgage points (prepaid interest) paid at closing on your primary home purchase.
Eligibility
Homebuyers paying points on mortgage origination
Tax Savings Calculator
Estimated Tax Savings
$1,100
At the 22% tax bracket, a $5,000 deduction saves you $1,100 in taxes.
Savings by Tax Bracket
Requirements
- 1Must be on primary residence
- 2Points must be customary in area
- 3Can deduct fully in year paid for purchase
Common Mistakes to Avoid
- !Amortizing when full deduction is available
- !Including non-qualifying fees
Required Tax Forms
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Frequently Asked Questions
What is the Mortgage Points Deduction?
Deduct mortgage points (prepaid interest) paid at closing on your primary home purchase.
Who is eligible for the Mortgage Points Deduction?
Homebuyers paying points on mortgage origination
How much can I save with the Mortgage Points Deduction?
The average tax savings is $3,000 per year. Your actual savings depend on your tax bracket and qualifying amount.
What forms do I need for the Mortgage Points Deduction?
You'll need to file Form 1098 and Schedule A to claim this deduction.
What are common mistakes with the Mortgage Points Deduction?
Common mistakes include: Amortizing when full deduction is available; Including non-qualifying fees. Always double-check requirements before filing.
Is the Mortgage Points Deduction worth claiming?
With average savings of $3,000, the mortgage points deduction is worthwhile for most eligible taxpayers. Make sure you meet all eligibility requirements.