In order to receive a lower interest rate, some Jacksonville Florida homeowners select to pay points, or one percent of the value of the total loan. In the United States, one benefit of paying points on a mortgage loan is that they are completely tax deductible for the year of your closing. This does not apply to points paid for a refinance loan. The IRS requires you to spread out the deduction over the life of the loan for refinancing points. For instance, if you paid $3,000 in points for a 30-year refinance loan, you can only deduct 1/30 of the $3,000 each year for 30 years. By paying the loan off early, you can deduct the remaining amount that tax year. Check with your local Jacksonville Florida accountant tax professional to get all of the details.