Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I bought my house in Jan 16 and borrowed $412K with 4.25% fixed for 30 yrs. I refinanced 7 months later same balance with 3.5% fixed 30 yrs. From the loan amortization calculator, I pay roughly $1350 of Mortgage Interest per month. I received 2 1098s, the 1st shows only $1201 and the 2nd shows $800 Mortgage Interest paid. I had expected the total to be over $10,000 which will help me with tax deduction. Now I only have $2000 for deduction.
I bought my house in Jan 16 and borrowed $412K with 4.25% fixed for 30 yrs. I refinanced 7 months later same balance with 3.5% fixed 30 yrs. From the loan amortization calculator, I pay roughly $1350 of Mortgage Interest per month. I received 2 1098s, the 1st shows only $1201 and the 2nd shows $800 Mortgage Interest paid. I had expected the total to be over $10,000 which will help me with tax deduction. Now I only have $2000 for deduction.
Could you please explain why?
Thanks,
If you purchased on 01/16, your 1st payment was on 03/01. Was the servicing on your loan sold?
If you refinanced later in the year, you most likely skipped a month of payments. That brings you down to 9 mortgage payments total for the year. Was the servicing on your refinance sold too?
Don't forget to include the "odd day's interest" that occurred with each deal (you paid interest from 01/16-02/01 on your purchase deal). You can find those amounts on your Closing Disclosures.
You don't skip a month. You pay that prepaid interest at closing (probably what you have referred to as "odd day's interest"). The "skip a month" is a falsehood. While OP may not have physically sent a payment every month, that interest was paid in some way from the date the loan was closed. Interest on mortgages is paid in arrears, so if OP closed on 1/16 he/she paid approximately 16 days of prepaid interest at closing for January 16-31, then the 3/1 payment was for interest accrued in February. Same thing with a refi. That interest should be reflected on the 1098.
You need to contact both of your mortgage companies about those 1098s as neither seems correct. You can also go back and pull your payment history to see amount applied to interest, and also count the prepaid interest on your closing disclosures as well.
Why don't you just collect all your mortgage statements and add the amount of interest paid on each statement? The total of all of your individual monthly interest amounts should be the same is the total of all your 1098s.
If they don't agree then there's a problem. And if there's a problem then the problem can be fixed.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
