If you're refinancing your mortgage,the tax rules are different thanthey are for first mortgages. On afirst mortgage, you can deduct theentire amount of any points you paythe lender in the same year you takeout the loan. When you refinance,the write-off for any points must bespread over the life of the loan. Thesame rules apply to home equityloans or lines of credit. Ifyou use the proceeds from a cash-outrefinance, a home equity loan, ora home equity line of credit to makeimprovements to your home, youcan deduct the points in the year youtake out the loan.