Understanding Your 1098 Mortgage Interest Statement

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1098 Mortgage Statement

The 1098 Mortgage Interest Statement is used to report interest of $600 or more that was paid on your mortgage within the previous tax year. This statement also itemizes amounts paid for private mortgage insurance during the year. We are required to mail out a 1098 to you on or before January 31. You will receive a 1098 even if you have paid less than $600 in interest. A PDF copy will be available to download from your account at sls.net after January 31. Let’s take a closer look at the form. The top section contains the tax year, your account number, the primary borrower’s name and mailing address and the property address. If your mortgage was acquired by Specialized Loan Servicing after the beginning of the year, the beginning Principal and Escrow balance are transferred from your previous servicer. The Principal section lists the beginning balance of the loan, the total amount that was paid towards the loan, and the ending balance for the tax year.

The Escrow section lists the beginning balance, the amount you paid into the account, the amount disbursed for taxes and insurance, and the ending escrow balance for the tax year. The Interest Paid section lists gross and net interest paid. The Escrow Disbursements section lists the taxes and insurance paid on the property, and the mortgage insurance paid on the loan. The Payment Calculation section provides a breakdown of payment for the tax year: principal and interest amount, escrow amount and total payment. The bottom section combines all of this information for you to include in your tax return. Box 1 reports the total amount of home mortgage interest you paid. Box 4 reports the total amount paid for your private mortgage insurance during the year. Important information related to certain states and Mortgage Insurance premiums as well as instructions for the Payer or Borrower can be found on the back of page 1.

About Mortgage Brokers

Mortgage brokers they’re basically pretty much all of them out there. It’s sink or swim. They don’t get paid unless they find a way to say yes. So if you walk in like when I was in mortgage banking and brokering. If you walked in and I’m with the broker and you were on an FHA loan program I’m probably going to have one lender for that. That it’s going to be really focused on FHA. If you’re VA you’re probably going over to this later. If you’re on maybe a conventional in a fight for sit down you’re over here. If it’s a 20% down you’re over here. If it’s a jumbo it’s this linker if you go in and maybe you have low credit scores you’re over with this lender right here. So they don’t have just their money. They have everybody’s money now. I know you go into these brokers and they’re like, we have 50 lenders. Let’s face it most mortgage brokers will only use two or three. They’ll probably have five to seven at any one time but they are very efficient because this is all they do and they don’t get paid and unless they find a way to say yes that’s why I sort of break it up. Is there are the lions and there are the gazelles and I would have rather have someone that is on a straight hundred percent commission. That if they don’t find a way to say yes they don’t get paid. That’s a huge motivator.

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