Tax Time and Your Mortgage

Hello Friends!

I am so excited about our new website, and our ability to better connect with you through blogging! With the tax deadline just around the corner, what better topic for my first post?

If you have a mortgage there are a few things you need every year when you file your taxes, but when you make changes to your mortgage, that documentation can change. If you made one of the following changes last year, here’s a quick look at what you’ll need.

  • Removed Private Mortgage Insurance (PMI): If you removed your private mortgage insurance last year, whether by a refinance with me, or through your servicing lender without a new loan, this is your last year to write off PMI. You will need your PMI summary one last time, next year you won’t need it at all! That means fewer deductions, but you also have more money in your pocket throughout the year.
  • New House: If you bought a new house this year there are a couple things to be aware of. First, you’ll want your final settlement statement, in order to list any mortgage fees. Next, you’ll collect the mortgage statement from your new lender, plus the statement from your previous lender (if you sold a home with a mortgage) in order to deduct interest, and any mortgage insurance. If you have an escrow account, your lender will provide the total taxes paid too. If your taxes are not escrowed, be sure to check the total with the county.
  • Refinance: If you refinanced, you’ll also want your settlement statement, as well as the new lender’s 1098 mortgage statement, and the old lender’s 1098, to ensure all the interest you paid is counted. Property tax totals can be found on your mortgage statements, or on the county website.