Dec
19
Congress has approved or renewed several tax relief measures to keep the dream of home ownership alive for both new home buyers and existing home owners this week. One of the biggest relief’s is the extension of Mortgage Insurance (”MI”) tax deductibility.
The legislation itself is no different than what was passed last year. MI premiums are still fully deductible for taxpayers earning up to $100,000, and partially deductible for those with incomes between $100,000 and $109,000. The only difference is that the deduction now applies to policies written through the 2010 calendar year.
Extending MI tax deductibility is a crucial move for many reasons:
- Risky low down payment loans are no longer a viable option and are being replaced by more secure loans with mortgage insurance.
- Mortgage insurance is not only safe and predictable, but it’s also cancelable and packed with several features borrowers want today.
- Consumers today have an increased understanding of how mortgage insurance can benefit them, and the extension of MI Tax Deductibility will help continue that trend.
If you have any questions or would like to better understand if Mortgage Insurance is right for you feel free to drop me an email or give me a call.
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