That does change the answer. Mortgage Insurance Premiums are amortized over 84 months, but only until the loan is paid.
Per IRS Publication 936 Home Mortgage Interest Deduction, page 8, middle paragraph states: No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. There are less stringent rules if the mortgage is with the Department of Veterans Affairs.
Yes, the new mortgage insurance premiums would be amortized in the same manner as the first premiums.
Thank you for clarifying the circumstances!
@mh0520
