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Refinance question

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mopowers
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Refinance question  Reply with quote  

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?
Post Wed Jan 30, 2013 3:00 pm
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oldguy
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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).
Post Wed Jan 30, 2013 4:25 pm
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mopowers
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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.
Post Wed Jan 30, 2013 4:48 pm
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coaster
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That was answered in the previous post, wasn't it?

And for the 'authoritative' word, download Pub 936 from the IRS web site.

~Tim~
Post Wed Jan 30, 2013 5:52 pm
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mopowers
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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.
Post Wed Jan 30, 2013 6:36 pm
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