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I still don't know if you actually paid them or they were rolled into the loan. However, it may not make a difference.

You (and the lender) may be calling this a renegotiation, but it quacks like a refi to me. We're not talking about a new loan to finance the purchase of a principal residence, and the way I read things that's one of the requirements for an exception to the general rule of amortizing points.


Yes, I actually paid the points out of my pocket. As to how it differs from a refinance, when I read IRS pubs. that talk about refinance, they indicate that the original acquisition loan is paid off, and a new loan is taken out, perhaps for an increased amount. In my case, I've still got the original loan. The modification didn't change the principle (hence no way for any points to be rolled into the loan) nor the remaining term. It's still the same original acquisition loan, just modified.

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