In March of 2019, we purchased a home and paid upfront mortgage insurance at the time of closing. For my 2019 taxes, I deducted the total up-front payment distributed over 84 months and then multiplied by the number of mortgage payments we made in 2019. In 2020, we refinanced and again paid an upfront mortgage insurance premium.
For the new mortgage, after the refinance, I plan to do the same thing I did for the original mortgage and distribute it over 84 months and deduct the correct amount for the number of payments made this year.
What's not clear to me, is how I should handle the mortgage insurance from the original mortgage? For our 2019 taxes, I deducted for 7 months so if I understand correctly, I still have 77 months left that I can deduct for. Can I continue to deduct for the whole 12 months in 2020 despite the fact that the original mortgage was paid off after refinancing and a new mortgage started or do I miss out on deducting the rest of the premium? Can I only deduct for the 3 payments that I made in 2020 for the original mortgage?
