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Refinance tax Deductibility Question- FHA refinance, Primary Residence?

I am taking out an FHA 15 year fixed mortgage. I am being charged 1% loan origination, a 700 processing fee, a 700 underwriting fee, and the standard title costs, and government transfer fees. I am getting 4.25% rate. Also, I am paying 1% FHA Up Front Mortgage Insurance Fee. I know that I can deduct the 1% loan origination fee over the life of the loan. Is anything else tax deductible? I live in Indiana if that makes a difference. The processing and underwriting fees are paid to the bank along with a $295 warehouse fee and $150 admin fee. Please let me know what fees both to the bank and if any other title fees are tax deductible.

Thank you for all your help.

2 Answers

  • 9 years ago
    Favorite Answer

    You cannot deduct the processing fee, warehouse fee or the admin fee. You are correct about the loan origination fee. Commitment fees and processing costs are not tax deductible.

    Source(s): IRS Publication 17 for tax year 2010, page 135.
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  • 3 years ago

    once you're saying funds out, you're definitely using a misnomer. you're in simple terms refinancing your place. for that reason you're no longer recieving capital valuable factors, in simple terms removing a private loan. you won't be able to be taxed on a private loan. until you definitely sell the residing house, the value of the home is in question because of the fact the marketplace will make certain the extremely value at sale time. because of this certainty, you could no longer have capital valuable factors as long as you very own the valuables.

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