What closing costs can you deduct?

As a home owner you can deduct mortgage interest payments (including points in most cases), mortgage insurance fees (but only for premiums paid in calendar year 2007), and real estate taxes. You can not deduct other closing costs you may incur, such as attorney's fees, mortgage filing fees, etc. although you can include these in the cost basis of the house, which may come into play when you sell it. You should review Pub 530:

http://www.irs.gov/pub/irs-pdf/p530.pdf