Charges, sometimes known as "points," paid by a borrower to a lender are generally deductible as interest over the life of the loan if they are compensation solely for the use or forbearance of money.

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Charges or points paid by a borrower to a lender are generally deductible as interest if they are compensation solely for the use or forbearance of money.

Charges, Sometimes Known as "Points," Paid by a Borrower to a Lender