Independent neighborhood guide, not affiliated with any homeowners association, property manager, city or official board.
Updated October 23, 2026
Points are prepaid interest you pay to get a lower mortgage rate. In the right situation, they can be deductible.
The rules depend on what kind of loan it is and how the money is used.
Here’s a general overview.
Buying your main home
Points paid to buy, build or improve your main home may be fully deductible in the year you pay them, if certain IRS conditions are met. Points the seller pays on your behalf are generally treated as if you paid them. IRS Publication 936 explains the details. Not every lender fee counts as points.
Refinances and investment property
Points on a refinance, or on investment or rental property, are generally deducted gradually over the life of the loan instead of all at once.
Should you pay points?
Paying points lowers your rate. It usually pays off if you keep the loan long enough. Ask your lender for a break-even estimate, and bring your closing statement to your tax pro. Read The Mortgage Interest Deduction and start with the buyer questionnaire.
This is general information, not financial, tax or legal advice. Talk with your lender, CPA or attorney about your situation.
A simple plan for your mortgage points move
I’ve been helping people buy and sell homes across the west metro for about two decades, and I build and remodel luxury homes too. I’ll help you see both what a property is and what it could be.
Getting the house ready, or making it yours
If you’re selling and want repairs handled before buyers see them, Super Crew Contractors can give you an estimate. If you’re ready for something custom, Ivy Lane Homes does luxury home building and remodeling. And a quick coverage check with Intrinsic Insurance before closing can save you a surprise. For the local picture, read my Chaska homes guide or browse neighborhoods in Chanhassen and Victoria.
Your next step in mortgage points
Every move is different. When you’re ready to talk about yours, I’m a call or text away.
Please note: I don’t handle rentals or property management. I work with buyers and sellers, and that’s where I can help you most in mortgage points.
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