Form 8396: Mortgage Interest Credit

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 Rate

    The rate of interest charged on a mortgage. Mortgage rates are ...
Related Articles
  1. Home & Auto

    Shopping for a mortgage in 2016? Use this tool first.

    As home-buying technology has progressed, the process of finding the best mortgages rates for 2016 can all be done online.
  2. Retirement

    Additional Streams of Income for Seniors

    Find out how a reverse mortgage can work in your favor during retirement.
  3. Insurance

    Behind The Scenes Of Your Mortgage

    Four major players slice and dice your mortgage in the secondary market.
  4. Home & Auto

    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.
  5. Professionals

    Mortgage-Backed Securities - MBS

    FINRA/NASAA Series 65: Section 8 Mortgage-Backed Securities - MBS. In this section Federal Home Loan Bank (FHLB), fannie mae (FNMA), Ginnie Mae (GNMA) and Freddie Mae (FHLMC).
  6. Credit & Loans

    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.
  7. Economics

    How Interest Rates Affect The Housing Market

    Understand how rate changes can affect home prices, and learn how you can keep up.
  8. Products and Investments

    Reverse Mortgages: Right for Clients? Not Often

    Reverse mortgages are a legitimate vehicle for folks age 62 and up to tap into the equity in their homes for other uses. Here's what to consider with them.
  9. Home & Auto

    Homebuyers' Walkthrough: Obtaining A Mortgage

    A mortgage is a pledge of real property as security for the payment of money, and today's homebuyers have a variety of options in terms of lenders and loan types. Obtaining a mortgage can be ...
  10. Retirement

    Best Mortgage Companies Friendly to Retirees

    If you’re no longer in the workforce and need a loan to buy a home, which companies are the most welcoming? Plus, good news about qualifying for a loan.
RELATED FAQS
  1. What are the pros and cons of a simple-interest mortgage?

    Learn the difference between a simple interest mortgage and a standard mortgage, along with their relative advantages and ... 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 >>
  3. What are the different types of subprime mortgages?

    Clarify your understanding of subprime mortgages. Learn about the different types, how they work and when they might be beneficial. Read Answer >>
  4. What is an assumable mortgage?

    The purchase of a home is a very expensive undertaking and usually requires some form of financing to make the purchase possible. ... Read Answer >>
  5. What's the difference between a credit rating agency and a credit bureau?

    Learn how to differentiate between credit rating agencies and credit bureaus, two industries that distribute valuable risk ... Read Answer >>
  6. I've come into a large amount of money. Should I invest it or pay off my mortgage?

    There is no simple answer to this question as it depends on a number of key factors, namely the aspects or criteria of your ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center