I had a loan with UFMIP. I read the irs documentation and reviewed the HUD 1 from the purchase. I'm looking at the tax deduction in this way, Because the Hud does not say it is for other years in the future, its fully tax deductable in the year of closing. UFMIP is just that its a upfront cost for mortgage insurance. The monthly MIP i pay is for the future. I have not found any documentation that says my UFMIP is for other years. Until then I will take the full deduction. The IRS documents support this, however if someone disagrees and can find documentation that says the UFMIP is for future years or the IRS makes some clarification its no reason for me to think otherwise.