I'm baffled when I total the amount of interest I pay per mtg payment for the year its almost 3 xs what the mortgage company reported on my 1098...how do they determine the totals
2007-02-20 07:36:16 · 3 answers · asked by Sista-Girl 2 in Business & Finance ➔ Taxes ➔ United States
Welcome to home ownership through a mortgage loan. When you financed the mortgage you agreed to terms on a mortgage rate whether it be fixed, variable or an ARM.
Based on the value of the mortgage and the interest rate, the mortgage company builds an amortization schedule which can change monthly depending on if you paid more than the payment or if you have a variable rate mortgage.
The longer you own the home the more principal you will be paying each month. I like to say I own a new brick per month, mortar extra!
Your monthly statement will break down how much was applied to interest, principal, insurance and taxes, if applicable. Add them up over the year and that should equal the 1098 form you receive from the mortgage company.
2007-02-20 07:46:40 · answer #1 · answered by R Worth 4 · 1⤊ 0⤋
The amount on the 1098 should be the total amount of INTEREST from your payments made during the tax year. Basically, would be your total payment, minus the part that went into your escrow account, minus whatever was applied to principal, minus any applicable fees.
2007-02-20 21:01:37 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The 1098 reports the amount of interest that you paid.
The mortgage bills that you receive include both principal and interest.
2007-02-20 15:41:42 · answer #3 · answered by D D 2 · 0⤊ 0⤋