2020 Main Home Loan Purchased and Refinanced in 2020

[tzirkle530]

I have a client that purchased a main home in 2020. At the end of 2020, he chose to refinance the same home. If I am correct, since original costs and points appeart to be grandfathered into Refi; Points need to be amortized over the Refi life of the new loan. What about original loan expenses.. (VA Fundingg, Mortgage Insurance Premium, Notary Fees, Prep Costs for Mortgage Note on Deed, etc.) Are these original loan costs amortized or just considered part of the Refi Loan; and, recaptured at sale? Shouldn't amortized points not shown on 1098 be added to Schedule A? What about costs listed above?

[sjrcpa]

 The original points are deductible since they were for the purchase of a principal residence.

[Just-Lisa-Now-]

all those junk fees they nail you with, get added to the basis.

Mortgage Insurance may be able to be used, I cant remember how that works when paid up front.