Can I claim mortgage points deduction if they're not showing on my settlement statement?

I'm trying to figure out if I can deduct about $33k in mortgage points that aren't actually listed on my settlement statement. We refinanced our home last fall, and I know we paid points to get a better rate (the loan officer definitely mentioned this during the process), but when I look at my closing documents, I don't see them specifically labeled as "points" anywhere. My lender is being super unhelpful - I've called twice and been transferred around to different departments with no clear answer. I'm using TurboTax and it keeps asking me for the amount of points paid, but I honestly don't know what to put since I can't find them listed anywhere! The loan was for $625k if that matters, and I'm pretty sure we paid around 1.25 points to bring down our rate. That's where I'm getting the $33k figure from, but I'm not confident enough to just claim it without proper documentation. Has anyone dealt with this before? Will the IRS flag me if I claim points that aren't clearly listed on my settlement statement?

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20 comments

Sara Hellquiem

•8M

This is actually a common issue! Mortgage points (also called discount points) are sometimes listed under different names on your closing documents. Look for terms like "loan origination fee," "discount fee," or simply "points" on your Closing Disclosure form. One point equals 1% of your mortgage amount, so if your loan was $625k, one point would be $6,250. If you paid 1.25 points, that would be around $7,800 - not $33k. I think your estimate might be off, as $33k would be over 5 points which is unusually high. If you still can't find it, contact your loan officer directly (not the general customer service) and ask for documentation that specifically shows the points you paid. For tax deduction purposes, you'll need this documentation if you're audited.

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Sara Hellquiem

•8M

The exact terminology isn't critical for tax purposes - what matters is that the fee represents prepaid interest to reduce your interest rate. The Closing Disclosure or settlement statement should be sufficient documentation even if it uses terms like "loan discount fee" instead of "points." If you're still uncertain after reviewing your documents, you can request a letter from your lender that clarifies which fees were for mortgage points. This provides additional documentation in case of an audit.

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Charlee Coleman

•8M

After struggling with a similar issue last year, I found this amazing tool called taxr.ai (https://taxr.ai) that really helped me figure out my mortgage point deduction situation. The website scanned my closing documents and immediately identified where my points were hiding - turned out they were listed as "discount fees" on page 3 of my settlement statement! What's cool is that it actually explains what different terms mean on your mortgage documents and tells you exactly what's deductible. Saved me hours of frustration trying to decipher all the mortgage jargon myself.

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Charlee Coleman

•8M

Yes, it recognizes documents from over 40 different lenders including smaller credit unions! It's specifically trained on various document formats and can identify the information regardless of what terminology they use. I was surprised because my lender had some really unusual labeling. For refinancing situations, you're absolutely right that the tax treatment is different. The tool actually flags this distinction and explains that points on a refinance typically must be deducted over the life of the loan rather than all in the first year. It provides a breakdown of how much you can deduct each year based on your specific loan details.

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Liv Park

•8M

Just wanted to update - I tried taxr.ai after seeing it mentioned here and it actually worked! Uploaded my closing disclosure and it immediately identified that what my credit union called "Rate Reduction Fee" was actually mortgage points. It even calculated the correct annual deduction amount since mine was a refinance. The tool explained that for refinances, points have to be deducted over the life of the loan (30 years in my case) rather than all at once like with an initial mortgage. No wonder I was confused! Definitely recommend if you're still stuck trying to find where your points are hiding.

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Ryder Greene

•8M

If you're still having trouble with your lender, I had success using Claimyr (https://claimyr.com) to actually get through to a human at my mortgage company who could help. I spent WEEKS trying to get proper documentation for my mortgage points last tax season, leaving voicemails that never got returned. With Claimyr, I got a callback from my lender in under 20 minutes and finally talked to someone in their tax documentation department who sent me an official letter confirming my points payment. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Honestly I was ready to just give up on claiming the deduction because dealing with customer service was such a nightmare, but this made it so much easier.

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Ryder Greene

•8M

It doesn't just connect you to the regular line - it uses an automated system that navigates through the phone tree and holds your place in line. Then when a human agent is about to pick up, it calls your phone and connects you directly to that agent. No waiting on hold at all! It works because the system keeps dialing and navigating the phone menus repeatedly until it gets through, which is something most of us don't have time to do manually. For mortgage companies specifically, I found asking for the "tax documentation department" rather than general customer service got me to someone who actually understood what I needed.

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Theodore Nelson

•8M

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway out of desperation. Within 30 minutes, I was talking to my mortgage company's documentation team who explained my points were labeled as "Loan Cost - 0.875% of Loan Amount" on my Closing Disclosure. They even emailed me a letter specifically stating these were mortgage points for tax purposes while I was on the phone with them. After literally weeks of getting nowhere, this solved my problem in a single afternoon. The person I spoke with said they get these requests all the time but their regular call center isn't trained on how to handle them.

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AaliyahAli

•8M

Yes, a "Rate Buy-Down Fee" is typically mortgage points, even if it's expressed as a flat fee rather than a percentage. That's exactly the kind of alternative terminology lenders often use. Mortgage points are essentially prepaid interest that reduces your interest rate, so anything that explicitly mentions reducing your rate (like your "Rate Buy-Down Fee") is likely points. As long as it was paid to obtain a lower interest rate, it should qualify for the deduction, though the tax treatment depends on whether this was a purchase or refinance.

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