Where every dollar of a mortgage payment goes
Mortgage interest at tax time
In one paragraph
Your servicer reports the mortgage interest you paid in the year on Form 1098. Whether you can deduct it depends on whether you itemize and on the limits set out in IRS Publication 936. You do not get interest back as a refund; a deduction only lowers taxable income. A tax professional can apply the rules to you.
Last reviewed against the primary sources listed below.
Form 1098
Servicers send Form 1098 early in the year. It lists interest paid, points, and sometimes property tax paid from escrow.
Publication 936
The IRS Publication 936 explains who can deduct home mortgage interest and the limits that apply. Read the current year's edition.
If you are behind on payments
If you are months behind, contact your servicer right away and talk to a HUD-approved housing counselor. The CFPB lists help for homeowners facing missed payments.
Common questions about interest
Do I get money back for interest paid on my mortgage?
Not directly. If you itemize, deductible mortgage interest lowers your taxable income under the rules in IRS Publication 936.
I am 4 months behind on my mortgage payments. What should I do?
Call your servicer now to ask about options, and contact a HUD-approved housing counselor for free or low-cost help.