Prepayment Penalty for Mortgage - Need clarification?

I have refinanced my home this past year and I know that I can claim the prepayment penalty that I paid as mortgage interest provided that the %26quot;penalty is not for a specific service performed or cost incurred in connection with your mortgage loan.%26quot;

What exactly does that quoted part mean? What sort of things would the prepayment penalty have to be charged for in order to prevent someone from being able to deduct it as mortgage interest?

Thanks in advance!

Prepayment Penalty for Mortgage - Need clarification?

Personally, I have never seen it not be deductible. It usually shows up included with the interest paid on the 1098.

Prepayment Penalty for Mortgage - Need clarification?

Prepayment penalty is interest. It will show up on a 1099 and be deductible.