Mortgage insurance is tax deductible

Mortgage insurance is tax deductible in 2007 In case you missed the Inman News story, Congress has made mortgage insurance tax deductible this year for families with incomes of $100,000 or less. Lenders often require mortgage insurance when buyers are putting less than 20 percent down on a home, and the deduction -- which applies to both private and government mortgage insurance programs (like FHA, VA and USDA) -- is expected to save those who qualify $300 to $350 a year.

The Mortgage Bankers Association, which has published a Q&A on how to take advantage of the tax deduction, says it's still not clear how the deduction will be applied to government insurance programs. The deduction is only good for mortgage insurance policies taken out this year, unless Congress renews it. The Mortgage Bankers Association says the deduction "will benefit prospective homebuyers and the nation as a whole" and that it will lobby for an extension of the program.
--Matt Carter, Inman News

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