Question: I paid a prepayment penalty on my morgage company.  Can i get that back  at the end. or  its tax deductable? 

Answer: Yes, a prepayment penalty is deductible.  It's essentially a payment in lieu of the interest the lender would have earned had you not prepaid.  It's deductible as interest.\n\nFrom the IRS website (pub. 936):\n\nMortgage prepayment penalty.   If you pay off your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan.
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