Let’s breakdown your year-end statement
Ahh… the end of the year. A time for celebrations, resolutions and mortgage statements.
If, “Wait. What statement?” was your first thought, have no fear! You’re not alone. We’re here to give you the full rundown on what to expect from your year-end statement.
Here’s everything you need to know:
What it is a year-end statement?
A year-end statement, (also known as IRS tax form 1098) is essentially a status update on a mortgage. It’s a document that is sent out and shows how much mortgage interest, mortgage points and property taxes have been paid by the borrower that year. It also includes how much the borrower has left on their mortgage. You can find a sample form here.
When you get an end of year statement
It’s common to receive multiple 1098 forms from any mortgage company or loan servicer that you paid mortgage interest, points, or taxes in a tax year. While each company has their own mail delivery method, all are required to be sent out by January 31. Some companies may even offer digital copies of your statement.
If your loan has servicing has been retained by Guaranteed Rate and you have made payments online, you can access your form at: www.rate.com/servicing
How to use a year-end statement
You can claim the mortgage interest you’ve spent on your home for a deduction when you file your federal income taxes.
Here is the catch though: to be able to claim the deduction, you’ll need to itemize your taxes instead of taking a standard deduction. When you do this, you may be able to claim a tax break on up to two homes in which you’ve paid the lender $600 or more.
Where to go for more info
If you’re looking to learn more or have any specific questions about your year-end statement, don’t hesitate to reach out to your loan servicer to help you track down any info needed.
** Guaranteed Rate does not provide tax advice. Please contact your tax adviser with any tax related questions.