I paid the FHA upfront fee at closing in December 2009. I couldn't itemize my 2009 taxes, so I didn't do anything about it last year. Now this year I am itemizing and wondering what I do with the 4000 dollar FHA upfront fee I paid in 09. The loan origination fee was paid by the seller, but I believe I can still put that in line 12 of schedule A 2010 (but maybe only amortized over the loan's life)? Neither fee was included on any 1098. At closing I paid over 6000 down payment, but the seller took care of some closing costs as well, like the origination fee and other closing fees to the loan. Thus my understanding is that I should add the FHA upfront fee and loan origination fee together divide them by 360 (payments in life of loan) and then multiply that number by 12 (payments made this year). Is that a correct way to proceed?