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If these fees are insignificant they can be expensed at the time incurred. On larger loans these fees can be materially significant. In these cases, the origination fees associated with the loan can be capitalized and amortized over the life of the loan.
Yes, mortgage loan origination fees are tax deductible in most cases. There are some rules, though, in applying tax deduction. To itemize deductions, it is recommended you use the services of a certified accountant.