Thanks for your question.
Loan origination fees (or points) paid on a refinanced mortgage must be deducted over the term of the mortgage. For example, if you paid a $1500 loan origination fee and refinanced on 07/01/2009 on a 15-year loan, the amount you can deduct for this fee in 2009 is $50. In 2010 and subsequent, you can take the full 12 month deduction of $100.
However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed in IRS Pub. 936 under Deduction Allowed in Year Paid, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. You can deduct the rest of the points over the life of the loan.
For more information, see Publication 936 (2009), Home Mortgage Interest Deduction
Hope this helps,