Yes, these fees can be deducted fully in 2016 if the mortgage insurance contract was issued in 2016, and do not have to be allocated out over the months.
Mortgage Insurance Premiums You can treat amounts you paid during 2016 for qualified mortgage insurance as home mortgage interest. The insurance must be in connection with home acquisition debt, and the insurance contract must have been issued after 2006. Qualified mortgage insurance. Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006)
Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. If provided by the Rural Housing Service, it is commonly known as a guarantee fee. The funding fee and guarantee fee can either be included in the amount of the loan or paid in full at the time of closing. These fees can be deducted fully in 2016 if the mortgage insurance contract was issued in 2016.
Source of above: https://www.irs.gov/pub/irs-pdf/p936.pdf on page 8.
