Hi S, This isn't a question a real estate agent can answer, so see an accountant.
With that disclaimer, since this is rolled into your mortgage, you didn't actually pay this fee at settlement, did you? It would have shown up as a line item on your HUD1, but then the amount on this line was added to your loan amount. Correct?
If this is the case, then your monthly interest paid and reported on your mortgage will include the incremental amount of financing for your PMI.
Again - I'm not an accountant! Good luck with your taxes. I hold a free community shred event the weekend after tax day. Drop by if you've got personal docs to shred - http://mocorealestate.com/community-shred-event/... more