If you own a home, and you itemize your deductions on Schedule A, you can claim a deduction for the interest paid. To be deductible, the interest you pay must be on a loan secured by your main home or a second home (including a second home that is also rented out for part of the year, so long as the personal use requirement is met). The loan can be a first or second mortgage, or a home improvement loan. To be deductible, the loan must be secured by your home and the proceeds must be used to buy, build, or substantially improve your home.
The interest deduction for home acquisition debt (that is, a loan taken out after December 15, 2017 to buy, build, or substantially improve a qualified home) is limited to debt of $750,000 ($375,000 if married filing separately). For home acquisition indebtedness incurred prior to December 16, 2017, the deduction is limited to $1 million ($500,000 if married filing separately)
In addition to the deduction for mortgage interest, points paid on the original purchase of your residence are also generally deductible. For more information about the mortgage interest deduction, see IRS Publication 936.