The provision of the U.S. tax code that allows
homeowners to deduct mortgage interest payments from income before computing taxes. Points and
origination fees are also deductible, but not lender fees expressed in dollars or any other
settlement costs. Interest deductibility is politically untouchable in the U.S., although it is often
criticized by economists and is found in few other countries. Interest deductibility enters a number
of decisions made by homeowners or purchasers, sometimes when it shouldn't.