Why is there a difference between the interest paid for my loan and interest reported in my Form 1098?

In general, unless you have an adjustable-rate mortgage (ARM), the percentage of your monthly mortgage payment applied as interest decreases as you repay your principal, or the amount initially borrowed to purchase your property. As the amount due in interest decreases, the amount applied to your principal increases. To see how the ratio of principal to interest changes in your monthly payment throughout the life of your loan, check your Amortization Schedule—log into your online account and go to My Loan.

There are many other reasons the amount you pay in interest may change year-to-year. E.g., if you have an adjustable-rate mortgage (ARM), your interest rate may have increased.