Real Estate Info & FAQ

Good news about Mortgage Insurance

I found this on Behind the Mortgage website. This is very good news.

Congress Passes Tax Deductibility of Mortgage Insurance Premiums

A rare bit of good news from the beltway: Early last Saturday morning, congress passed a "tax extender" package that included the deductibility of mortgage insurance on new mortgages originated in 2007. Though this is great news, and a long anticipated change, there are some restrictions, so not every homeowner will benefit. The rules, as we understand them, follow:

• Permits federal personal income tax deduction for mortgage insurance premiums
• Applies to new originations only in 2007 (like many other provisions in the bill, it must be reauthorized for 2008)
• Only taxpayers earning less than $110,000 per year are eligible for the deduction (We understand that the deduction is phased out for borrowers w/ incomes between $100,000 and $110,000)
• Applies to premiums for both private and government (FHA,VA & RHS) insurance programs.

As with any bill, this one now heads to the President's desk for signature, and there has been no indication of any veto action on this bill. Will post a link to this as soon as we can dig it up at congress.org

Labels: Financing, Mortgage Insurance

posted by jkballentine @ 5:40 AM