Mortgage Points and Taxes

[David F.]

In regards to limitations on deducting mortgage discount points in year one for a primary residence the IRS states "The amount of points paid must not be excessive for your area".  I have no idea how to interpret that ambiguity.  Does anyone know if there is any further information or clarification on this matter?  What if one spends $100,000 on discount points for a jumbo nonconforming loan on a 4-unit?  Would it be amortized over several years if disallowed and if so how many years?  

Any advice is greatly appreciated.