H. Interest Paid: 1. On January 4, 2021, The Allen's purchased a house to be used as their principal residence. The purchase price was $500,000. At closing, they paid three (3) points on this loan. The amount of interest paid on 2. this loan and reported to them on Form 1098 was $18,000. The discount points were not reported on Form 1098, but amounted to $9,000. 3. On October 1, 2021, the Allen's decided to refinance their mortgage with a 5%, 15-year mortgage. The amount refinanced was $75,000 to make an addition to the house. The total amount of interest paid on this loan and reported on Form 1098 was $5,200.