Mortgage Points Deduction — Tax Deduction Guide 2026
Deduct mortgage points (prepaid interest) paid when purchasing a home.
Eligibility
Homebuyers who paid points on their mortgage
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
- 1Points must be for home purchase
- 2Must itemize
- 3Paid at closing
Common Mistakes to Avoid
- !Not amortizing refinance points
- !Missing seller-paid points
Required Tax Forms
Calculate Your Full Tax Savings
Use our free tax calculators to optimize your entire tax return.
Frequently Asked Questions
What is the Mortgage Points Deduction?
Deduct mortgage points (prepaid interest) paid when purchasing a home.
Who is eligible for the Mortgage Points Deduction?
Homebuyers who paid points on their mortgage
How much can I save with the Mortgage Points Deduction?
The average tax savings is $2,000 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 Schedule A and Form 1098 to claim this deduction.
What are common mistakes with the Mortgage Points Deduction?
Common mistakes include: Not amortizing refinance points; Missing seller-paid points. Always double-check requirements before filing.
Is the Mortgage Points Deduction worth claiming?
With average savings of $2,000, the mortgage points deduction is worthwhile for most eligible taxpayers. Make sure you meet all eligibility requirements.