Why Do I Receive a Form 1098?
Your lender is required by law to send this document to you if you paid $600 or more in interest on your mortgage during the previous year. If you did not spend at least $600, you will not receive a Mortgage Interest Statement.
The form is a benefit to you as a homeowner, because it enables you to see how much total interest you paid for the year, which you may then be able to deduct from your taxes. Consult with a tax professional on how to do this.
What Is Included on a Form 1098?
Here’s how to read your Form 1098:
Box 1: Here your lender includes the mortgage interest they’ve received from you for the year.
Box 2: This box shows the remaining principal balance for your mortgage.
Box 3: The date when your mortgage originated.
Box 4: If you overpaid on mortgage interest and it was refunded, the amount will be stated here.
Box 5: If you’re paying for private mortgage insurance or other mortgage insurance premiums, they will be included here.
Box 6: This box indicates any mortgage points you might be able to deduct on your taxes.
Box 7: This is a checkbox stating whether the address for this particular mortgage is the same as the borrower’s address.
Box 8: If the mortgage borrower’s address is different from the address of the property that this mortgage applies to, then the address of the mortgaged property is listed here.
Box 9: States the number of properties tied to the mortgage.
Box 10: Includes any real estate taxes paid on your property during the year.
Box 11: If the lender acquired the mortgage during the year, the date is stated here.
The IRS dictates that property owners should file a separate 1098 for each of their mortgages.