Information regarding browser or device support

Oh no! We may not fully support the browser or device software you are using !

To experience our site in the best way possible, please update your browser or device software, or move over to another browser.

Real Estate

Tax Implications of Refinancing a Mortgage

If you’ve refinanced your home this year, you may be able to reduce your taxes by deducting some of the costs you incur during the refinance. Learn more here.

Refinancing Tax Deductions: Implications & How To?

Refinancing is the act of getting a new loan, usually at a lower interest rate, for a purchased asset. This generally refers to a new home loan. You may want to refinance to change the type of loan or tap into the equity in your home to fund education, a major purchase, or to reduce debt.

Refinancing & Tax Deductions

A tax deduction is an allowed reduction of gross income on a tax return. Tax deductions can be a direct deduction from income, such as an IRA contribution or the Educator's Expense Deduction, or part of the allowed Itemized Deductions which are a group of deductions that are combined and then subtracted from from the adjusted gross income.

Mortgage interest is one of the most common types of Itemized Deductions. Points paid to refinance the loan are usually deductible over the life of the loan. These points are treated as mortgage interest.

Refinancing a mortgage can save you a significant amount of money each month if you get a lower interest rate or longer term or just change the borrowing in some way to access your equity.  However, you can also save some money on your taxes by deducting some of the costs you incur during the refinance.


Not all interest is necessarily deductible, nor points or origination fees, or even property taxes.

What part of home loans are and aren’t deductible?


  • Mortgage Interest
  • (Discount) Points
  • Home equity for home improvement or purchase
  • Property taxes (total tax deductions are limited to a total of $10,000)


  • Most Closing Costs or settlement fees
  • Homeowners insurance

Tax deductions can include mortgage interest, points or money paid to set up the loan, and property taxes paid at closing. But not all interest, points or origination fees, or even property taxes are deductible. Be sure you get all you deserve and talk with a trained and experienced tax professional to maximize all of your tax deductions if you have refinanced a mortgage.

Refinance tax implications

  • Deductible interest caps – no interest allowed on principal greater than $750,000 for loans after December 14, 2021
  • Standard & itemized deductions


When every dollar matters, it matters who does your taxes™


    Our Tax Pros will connect with you one-on-one, answer all your questions, and always go the extra mile to support you.


    We have flexible hours, locations, and filing options that cater to every hardworking tax filer.


    We’ve seen it all and will help you through it all. Over 40 years of experience and our guarantees back it up.