Understanding Your 1098 Mortgage Interest Statement

The 1098 Mortgage Interest Statement is used to report interest of $600 or more that was paid on your mortgage within the previous tax year This statement also itemizes amounts paid for private mortgage insurance during the year

We are required to mail out a 1098 to you on or before January 31 You will receive a 1098 even if you have paid less than $600 in interest A PDF copy will be available to download from your account at slsnet after January 31 Let's take a closer look at the form

The top section contains the tax year, your account number, the primary borrower's name and mailing address and the property address If your mortgage was acquired by Specialized Loan Servicing after the beginning of the year, the beginning Principal and Escrow balance are transferred from your previous servicer The Principal section lists the beginning balance of the loan, the total amount that was paid towards the loan, and the ending balance for the tax year The Escrow section lists the beginning balance, the amount you paid into the account, the amount disbursed for taxes and insurance, and the ending escrow balance for the tax year The Interest Paid section lists gross and net interest paid

The Escrow Disbursements section lists the taxes and insurance paid on the property, and the mortgage insurance paid on the loan The Payment Calculation section provides a breakdown of payment for the tax year: principal and interest amount, escrow amount and total payment The bottom section combines all of this information for you to include in your tax return Box 1 reports the total amount of home mortgage interest you paid Box 4 reports the total amount paid for your private mortgage insurance during the year

Important information related to certain states and Mortgage Insurance premiums as well as instructions for the Payer or Borrower can be found on the back of page 1 For more information on your 1098 Mortgage Interest Statement please consult your tax advisor or contact us at 1-800-315-4757