DEFINITION of 'Form 8396: Mortgage Interest Credit'

A tax form distributed by the Internal Revenue Service (IRS) and used by filers seeking to claim mortgage interest credit on their tax return. In order to claim a mortgage credit, the taxpayer must first have obtained a Mortgage Credit Certificate (MCC), which are typically issued by state or local governments and agencies. The home that the Certificate is issued for must be in the same jurisdiction as the issuing agency, and must also be the tax filer's main residence.

BREAKING DOWN 'Form 8396: Mortgage Interest Credit'

Some mortgage credit certificates, mostly those issued by the federal government or federal agencies, may not qualify for the Mortgage Interest Credit. If a mortgage is refinanced then the MCC must be reissued, and homeowners who sell their residence within nine years may have to repay some of the credit issued.

RELATED TERMS
  1. Mortgage Credit Certificates

    A certificate provided by the originating mortgage lender to ...
  2. Second Mortgage

    A type of subordinate mortgage made while an original mortgage ...
  3. Primary Mortgage Market

    The market where borrowers and mortgage originators come together ...
  4. Mortgage Banker

    A company, individual or institution that originates mortgages. ...
  5. Merchant Category Codes (MCC)

    A four-digit number that a credit card issuer uses to categorize ...
  6. Mortgage Bond

    A bond secured by a mortgage on one or more assets. These bonds ...
Related Articles
  1. Taxes

    5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.
  2. Personal Finance

    Shopping for a Mortgage in 2017? Use This Tool First

    As home-buying technology has progressed, the process of finding the best mortgages rates for 2017 can all be done online.
  3. Personal Finance

    Shopping for a Mortgage? Use This Tool First

    As home-buying technology has progressed, the process of finding the best mortgage rates for 2016 can all be done online.
  4. Personal Finance

    Behind the Scenes of Your Mortgage

    Four major players slice and dice your mortgage in the secondary market.
  5. Personal Finance

    Comparing Reverse Mortgages vs. Forward Mortgages

    Which one a homeowner chooses depends on where you are at this point in your life, personally and financially.
  6. Personal Finance

    7 Mortgage Trends To Expect In 2011

    How will the year compare to 2010? What's likely to be different?
  7. Personal Finance

    How Mortgages Affect Credit Scores

    A mortgage is the pinnacle of consumer credit. Paying a credit card a little late won’t impact your credit score much, but paying your mortgage late will.
  8. Retirement

    What Is A Retirement Saver's Tax Credit?

    Here, we take an in-depth look a tax credit designed to provide relief to some people who are saving for retirement.
  9. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
RELATED FAQS
  1. What's the difference between FHA and conventional loans?

    Conventional mortgages require higher credit scores than FHA mortgages. Read Answer >>
  2. If my mortgage lender goes bankrupt, do I still have to pay my mortgage?

    Yes, if your mortgage lender goes bankrupt you do still need to pay your mortgage obligation. Sorry to disappoint, but there ... Read Answer >>
Trading Center