How to read Form 1098, the mortgage interest statement

Boxes 1 through 3: interest, principal, and origination date

Box 1 shows the mortgage interest the lender or servicer received from you during the calendar year, not including points. Box 2 shows the outstanding principal as of January 1 of that year, or as of the date the loan was originated or acquired during the year, so it is not your year-end balance. Box 3 shows the date the mortgage originated with the original lender.

Boxes 4 through 6: refunds, mortgage insurance, and points

Box 4 shows any refund or credit of interest you overpaid in an earlier year. Box 5 shows mortgage insurance premiums, if the lender reported them. Box 6 shows points paid on the purchase of a principal residence, which can include points the seller paid.

Boxes 7 through 11: the property and other details

Boxes 7 through 9 identify the property securing the mortgage and, if there is more than one, the number of properties. Box 10 is optional and may show other information, such as property taxes or insurance paid from escrow. Box 11 shows an acquisition date if the lender acquired the loan during the year.

Compare the form with your own records

Check that the name, loan, and property match your records. If your loan was transferred during the year, you may receive a form from each company that received interest from you. Compare the amounts with your year-end statement and payment history, and ask the lender to correct a form that looks wrong. A difference is a reason to review the figures, not proof of an error.

• Compare box 1 with the interest on your year-end statement.
• Look for a second Form 1098 if your servicer changed during the year.
• Confirm the property address in boxes 7 and 8.

The form reports amounts; it doesn’t decide your taxes

Form 1098 reports what the lender received; whether any amount is deductible depends on the tax year and your situation. The IRS notes that the form may even report points you can’t deduct. For those questions, use the IRS instructions and Publication 936, or ask a tax professional. In Lighthouse, your mortgage statements and Home Profile can help you compare the form with your own records, but Lighthouse does not provide tax advice.