Do I use my closing documents or my 1098 for prepayment info?

[Jenykell]

I bought a house at the end of Nov with an FHA loan.  First payment was Jan.  The 1098 from the loan servicer says no prepayments for PMI or property taxes, but on my closing documents it does?  Which do I use?

[KenH1]

Use your closing documents.  The 1098 is only what the lender processed for you after closing.

Next year, just use the 1098.

[Jenykell]

Okay, so according to the closing docs, There was a credit of x, and then a payment of y for 2016 taxes.  Do I list the difference, or the full amount paid to the township?

[KenH1]

The credit/debit terminology on a closing document can be confusing.  Essentially you can deduct (as property taxes) the amount that your town received on your behalf.  The surefire way to get the right # is to contact your town tax collector's office.

[Jenykell]

Okay, one more question.  Where do I enter the PMI?  The 1098 doesn't list it, I have it on the closing doc, but not a 1098.  The spot for the insurance asks for your lenders info, etc. and info from the 1098, but if I am using the closing docs...  My loan has been sold, so do I use the lender from the closing for the PMI and then the current lender, who sent me the 1098 for the little interest?

[KenH1]

That would work fine.  I've never heard of pre-paid PMI, but if it's on the closing docs, you can add it into the insurance section.

[Jenykell]

It may not be called that.  But it is the area on the settlement statement that says Mortgage Insurance Premium to HUD.  It was part of the closing fees.