Form 1098

JVILLARREALJR · Joined: 28 Jan 2008 Posts: 1 1.36 Dollars($)

We have two mortgage loans in our house. We pay extra money every month to the principal of the second loan to pay it earlier. The bank sent the 1098 with the amount of interest only. I request a breakdown and they said that they don't provide it. Now, I'm thinking they are using the extra for interest. Is there a law or something to make the bank to disclose a breakdown?
Thanks,
JV

helping_user

Welcome JV.

The Form 1098 is filed with the IRS to update the former on what amount of interest you have paid during the entire tax year and what expenses you have taken care of in your mortgage in that year. You can then use these expenses as deductions on your tax return.
You will get this form from your lender.

Specifically the form should specify the interest and mortgage insurance you paid in 2007 as far as your situation is concerned. But I guess your loan doesn't have such insurance and that's the reason it is missing there in the form.

The extra payments towards the principal are however not included because they are not tax deductible. However, I haven't heard of any such laws but it's your lender's responsibility to give you a breakdown of what needs to be shown in the form.

Thanks.

Guest 0.10 Dollars($)

Helping User, thanks for your help. The bank of the first mortgage sends a yearly statement with the breakdown. Anyway, I'm going to another bank to refinance and save a couple 100's. I hear rates coming down today.
JV

adonis · Posted: Wed Jan 30, 2008 2:32 am Post subject:

Hi JV,

Welcome back.

So, you are refinancing the second loan or is it on the first and the second combined?

"Now, I'm thinking they are using the extra for interest."

Why do you think so? Did you work out the figures or is that they seem quite big and that's the reason you doubt whether they could include the extra payment as well.

Have you though of any refinance options, fixed or adjustable? You can freely discuss it here with us. And, one more thing, did you notice you have earned dollars in your very first post, so had you logged in this time, you could have earned some more.

Feel free to check out how some of the members have earned dollars .

lisascherzer · Joined: 04 Jan 2008 Posts: 749 94.10 Dollars($)

Hi JVILLARREALJR,

The mortgage company is only required to send the amount of the interest and mortgage insurance paid for the purpose of tax deductions. I suppose if you wanted a breakdown of your payment history for that year that you could request a payment history from them. Most of them will provide you with that but will not put it on the 1098 form.

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