When to report mortgage interest that was in forbearance then added to principle and refinanced?
The interest that was not paid during forbearance is being added to outstanding principle, then put into a new loan. The new loan will have its own interest, but what about the interest from the original loan that gets wrapped up into the new loan?
01876
1 Replies
JillS56
Expert Alumni
Mar 28, 2022 7:37:41 PM
You can only deduct interest that is reported on Form 1098. If you did not pay the interest and the mortgage company added the unpaid interest to your loan balance and then refinanced, there is nothing to deduct. You have not paid that interest.