@Opus 17
Thanks for the response!
To provide a little more context:
We closed on our refinance on 3/30/2020.
Paid-in-full data listed on documents for old mortgage is 4/6/2020.
If I understand correctly, I can deduct starting in the month of our closing, i.e. when the MIP policy goes into effect. That being said, If I should be calculating the amount based on the number of days as opposed to months then there's not much difference between 3/30 and 4/1 and so it seems easier to calculate based on 4/1. If I can deduct for the entire month of March, then it makes sense to do so but not if it's just a couple of days in March.
For the original loan, I completely understand the 96/2555 amount, assuming the paid-in-full date is the correct one to use and not the closing date on the new mortgage.
For the new mortgage, if I go based on the closing date, I can see a few different scenarios.
1. Starting on 3/30 (closing data): deduct for 3/30 - 12/31 or 277/2555.
2. Starting on 3/1 (beginning of month): Deduct for 3/1 - 12/31 or 306/2555
3. Starting on 4/1 (first of the month of paid-in-full date for old mortgage): Deduct for 4/1 - 12/31 or 275/2555
4. Starting on 4/6 (paid-in-full date for old mortgage): Deduct for 4/6 - 12/31 or 270/2555.
In the end, I don't think it makes a huge different in the amount and I think it makes it easiest to go based on the beginning of the month, either 3/1 or 4/1. I would just like to know what would be the best of those four scenarios to base my deduction on.
Thanks,
Mike
