Mortgage closing costs are the fees associated with securing a mortgage when you buy or refinance a property. Your total closing costs depend on the home’s purchase price, your loan type, and your lender.
What are some examples of closing costs?
Closing costs are divided between you and the seller. As the buyer, your portion of the costs may include:
- Lender fees
- Loan underwriting fees
- Mortgage discount points
- A mortgage insurance premium
You can find your mortgage closing costs in the loan estimate and the closing disclosure.
Which closing costs are deductible?
For your primary or secondary home, the only deductible closing costs are home mortgage interest and certain real estate taxes. These deductible costs generally include:
- Real estate taxes paid at closing
- Mortgage interest paid when the cost was settled
- Interest paid at the house’s purchase
- Loan origination fees, known as “points”
Note: Other costs are deductible when refinancing your rental property.
To deduct your mortgage closing costs in TurboTax, go to the Deductions & Credits section of your federal return and select Start next to Mortgage Interest and Refinancing (Form 1098). If you have multiple 1098 forms due to refinancing, ensure they’re first entered correctly.
