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Even after refinance, 1098 has outstanding balance? Lender says it is correct!

Hi there

 

I refinanced my house mortgage in April 2019 from Lender A to Lender B. 

Lender A's 1098 still shows Outstanding Mortgage Principal as 230,000. When I asked them they replied: 

"Our records indicate that your outstanding principal balance listed on your 1098 form is accurate based off the months January through April when your loan was paid in full. Your outstanding principal balance on your 1098 was recorded for that time prior to your loan payoff."

 

Is my lender correct? Shouldn't 1098 show $0 as outstanding balance?

 

Thanks.

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1 Reply
JotikaT2
Employee Tax Expert

Even after refinance, 1098 has outstanding balance? Lender says it is correct!

The amount listed in Box 2 of Form 1098 is the outstanding principal balance as of January 1, 2019. 

 

It is not the balance at the end of the year.

 

Box 2

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