we refinced in 2009 so we have 3 1098 forms. One from our original bank, one form the bank we refinaced with and one from the bank they sold our loan to. The mortgage interest shown on the 2nd 1098 is extremely high. Could this be incorrect?
I've already tried...
Answers
Expert
If it is off that much, you need to contact the bank ..
Have you looked at your last bank statement for last year, often they show the year to date interest paid .. that might help..
If you know how much the interest is per month, then just multiply that by the number of months to get the estimate
Did you pay points? Usually they are separate on the 1098, but they might have made an error?
Paul
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Hi Paul,
The 1098 I am not sure of is the one we refinaced with and they only held the loan for a month before they sold it. The other two 1098's I can take the Mortgage insurance and divide it by the number of months and come out exactly to the penny what I am paying on my mortgage. The refi 1098 is more than 3 times the amount of the others.
My first loan's PMI was $144 a month and currently my PMI is $117 a month.
That refi 1098 shows $4500?! Any ideas?
Thank you!!
Expert
Without knowing the terms of the loan, hard to say if correct or not.
If you know it is incorrect, they you have to adjust for that on your tax return.
To find out if is about right, call the bank.
Or take the balance on the mortgage and multiply by the interest rate you are paying, make sure to adjust for the number of months. For example, if you mortgage is $200K, the rate 5%, the yearly interest would be $10K, if you refinanced on July 1, then you should have six months interest or $5K on the new 1098.
If you use a tax pro, let them review for you.
It is not uncommon to have 3 or more 1098's on a tax return.
Best regards,
Paul
Paul
About the Expert
Paul Thode has many years of experience preparing taxes. In addiion he has many years of accounting experience, ranging from Assistant Controller to Chief Financial Officer of a publicly traded company. He has a Bachelors in Managerial Economics from the University of California, Berkeley. He has a Master's in Accounting from Golden Gate University. He has an MBA in Finance from Golden Gate University. View Profile
Paul,
I did not pay points. I will call the bank on Monday. Thank you for your advice, taxes make my head spin!!
Debbie
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