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The rate of interest of the hypothetical mortgage is the annual proportion rate of the brand new mortgage for purposes of the Federal Truth in Lending Act. The principal of the hypothetical mortgage is the remaining excellent stability of the certified mortgage indebtedness shown on the old MCC. This indebtedness is a mortgage that you just took out to purchase, construct, or substantially improve your principal residence and that is secured by that residence. Show how much of the interest each of you paid, and give the name and tackle of the one that obtained the form. Deduct your share of the interest on Schedule A , line 8b, and enter “See attached” to the best of that line.

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