@KathrynG3, thanks for your response! this brings up a few more questions.
So you mention points. Are you using points in a general way? I normally think of points as what would show up in box 6 on the 1098 form. I just want to make sure that I understand what you mean as I'm talking about MIP showing up in box 5.
As for my initial question, maybe if I fill in some more detail it will be easier to explain. The refinance in 2020 was with the same lender as our original mortgage. We held that original mortgage for approximately a year, and when doing our taxes for 2019 we deducted for 7 out of the 84 months that I understand the deduction should be distributed over. Additionally, we paid 3 payments on that mortgage for 2020 before refinancing. Does the way that I calculate the deductible portion change now that my original mortgage has been paid off in the refinance? Do I continue to deduct the MIP 12 months at a time (assuming this deduction is extended beyond 2020) until all 84 months have been exhausted? Do I now instead deduct whatever is left of the MIP on my 2020 taxes since the mortgage is paid of and thus the life of the loan was only 12 months?
I'm also assuming that as far as the new mortgage goes, this should be distributed over the allowed time and deducted a little bit at a time each year as well.
Sorry, this is all a bit confusing and I'm just trying to make sure I optimize the deduction but do so correctly. Thanks!
