Which of the following statements regarding the tax deductibility of points related to a home mortgage is correct?

Question

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Points paid in the form of prepaid interest on a refinance are deductible over the life of the loan. Points paid on an original home loan (option A and B) are also deductible, but they must be allocated and deducted over the life of the loan, unless it is a home purchase loan. However, option C specifically mentions a refinance, which implies that the points were paid to refinance an existing mortgage rather than purchase a new home.

Which of the Following Statements Regarding the Tax Deductibility of Points