mopowers
Contributing Member
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Location: CA |
Refinance question |
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I just did a FHA streamline refinance. There was a lender credit that covered the closing costs from the broker. It was also used to build up my new impound account. Am I responsible for claiming this amount on my taxes?
Also, Can I deduct the upfront mortgage insurance added to the loan amount, even though it is amortized over 30 years?
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Wed Jan 30, 2013 3:00 pm |
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oldguy
Senior Member
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You deduct the tax/ins as it is taken out of your impound account and actually applied to tax/ins.
Re the upfront mort ins - you will be deducting it each yr as it is being paid to the lender. (Not as an upfront lump sum).
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Wed Jan 30, 2013 4:25 pm |
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mopowers
Contributing Member
Cash: $ 9.25
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Location: CA |
So, is there a difference between the mortgage insurance premiums I pay monthly and the upfront mortgage insurance they added to the new loan amount?
I realize the taxes are deductible as well as the MIP I pay throughout the year.
I'm just curious about the $5,000 they added to my mortgage when I refinanced.
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Wed Jan 30, 2013 4:48 pm |
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mopowers
Contributing Member
Cash: $ 9.25
Posts: 41
Joined: 03 Apr 2008
Location: CA |
After some research, you're right; it was answered. But, not to 100% accuracy. Apparently prepaid mortgage insurance can be deducted annually. But you have to divide the amount you paid upfront by 84 months, then multiply it by 12 to get the amount that is deductible for the first 7 years.
Thanks for the help guys.
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Wed Jan 30, 2013 6:36 pm |
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