Publication 936, states that private mortgage insurance premiums must be amortized over an 84-month period. It means that even though you may have prepaid a larger amount when closing, you can only deduct the portion that is allocable for the months you paid in 2016.
Ex: I prepaid $6000 in private mortgage premium when I closed my home on 7/1/2016. $6000/84 = $71.42. $71.42 is paid to my mortgage company with my mortgage payment for the rest of the year. I can deduct $71.42 X 6 months paid = $428.52 for 2016.
The rest of the prepaid amount is deducted in future tax years.
**Mark the post that answers your question by clicking on "Mark as Best Answer"