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If you paid a lump-sum premium for insurance provided by FHA or a private mortgage insurer that also covers years after 2009, you must determine the portion of the premium that pays for insurance for 2009 by dividing the total premium by the stated term (number of months) of your mortgage, or 84 months, whichever is shorter.
Multiply that amount by the number of months during 2009 that your home was covered by the mortgage insurance. Enter the amount allocated to 2009 in the worksheet for Schedule A, Line 13, to figure your deduction for 2009.
You figure your deduction in later years based on the amounts allocated to those years. If your mortgage is satisfied before the end of your allocation period, you cannot deduct the amounts that are allocated to periods after the mortgage is satisfied.
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Thank you opa
The 1098 only reflects the actual amount of mortgage insurance premiums that you paid this year which were included in your payments.
The other amount of $3,072 was an up front payment which needs to be spread over the life of the mortgage or over 84 months, whichever is shorter. The up front amount will not be included in your annual 1098 statements. You will need to figure that additional amount on your own.
Is this different than points paid, because the 1098 does not show any points paid? Does your answer mean I amortize the $3072 over the 84 months and take 1 years worth $36.50*12 (the house was bought in January) of deduction on Schedule A?
Yes, the mortgage insurance premium is different that points paid. Points you paid should be listed totally separate from mortgage insurance premiums.
And yes, it is correct that you should take the amount of $3072 and deduct on that on Schedule A over a period of 84 months -- or $36.57 each month until you have claimed a deduction for the entire amount.