The Federal Reserve cut interest rates three times in 2025, encouraging some homeowners to refinance their mortgages. If you refinanced last year and haven’t yet filed your 2025 federal income tax return, you may be able to reduce your tax liability. In general, “points” (prepaid interest) paid to initiate a new mortgage on your primary residence are deductible. You must itemize deductions (not take the standard deduction) and meet several conditions to qualify. Note, however, that other refinancing charges, such as appraisal, title and lender fees, aren’t deductible. Contact us for help determining whether you’re eligible to take any refinancing-related deductions.
