I refinanced in 2013 in a no-points no-closing costs situation where the lender provided a credit to pay for the closing costs.
The lender credit exceeded my normal closing costs that appear on the Hud-1 (appraisal, credit report, flood cert, title, recording etc).
However, since my homeowners insurance was due, they included that on the Hud-1 as an "Items required by Lender to be paid in advance".
Finally, there was the $25 Fax Fee and the $75 Recording fee to pay off the old mortgage that aren't included on the Hud-1 but were included in the payoff statement from the old lender.
Just to summarize $1700 Costs for new lender $100 Costs for old lender above principal and interest $1500 Homeowner's Insurance $2700 Lender Credit
If the lender is allowed to pay part of my homeowner's insurance or contribute to my escrow account, then this transaction didn't generate any income. That doesn't seem quite right. I'm trying to do the right thing.
My guess is that I can count the old lender costs and the new lender costs and the transaction generated $900 in income.
So basically, my questions are:
1) Did this transaction generate income and how much 2) Is the new lender supposed to send me some kind of 1099 2) If so, where do I enter that income when I file.Thanks in advance