New York ? Those who took advantage of low interest rates in 2003 to buy a home or refinance an existing mortgage may have an extra tax deduction due them.

Taxpayers who paid “points” to obtain a mortgage can deduct those points on their 2003 tax returns — if the mortgage was to buy or improve a home, if they meet several IRS tests and if they itemize deductions. Points also can be called loan origination fees, maximum loan charges, loan discounts or discount points.

Generally, points paid to buy a home are fully deductible in the year of the purchase. So are points paid to obtain a home-improvement or home-equity loan, if those proceeds were used solely for remodeling.

For refinancing and other loans, the points must be deducted over the life of the loan. To determine that amount, divide the dollar amount of points by the number of years in the original mortgage term.

For more information, check with your lender or go to the IRS Web site, www.irs.gov.