When you refinance on your primary residence, there are a few benefits from a tax perspective:

  • The mortgage interest paid on the refinanced mortgage is still deductible on Schedule A of your 1040 if you itemize your deductions (just as the original loan interest was).
  • If you paid points, those can be amortized over the life of the loan and deducted on Schedule A of your 1040

Closing or settlement costs related to the refinance such as document fees, appraisal fees, etc. are not deductible.