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PMI Deduction Extended - Silver Lining for Many Highly-Leveraged Borrowers!

By
Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

Hey, gang - we're stockpiling Champagne for the big celebration Monday night!

The news isn't all bad for highly-leveraged borrowers in today's housing market - in Chicago and elsewhere.  Congress this week extended, through 2010, the Income Tax Deduction for Private Mortgage Insurance.  This will help out many middle-income borrowers who originated their loans beginning in 2007.

Realtors, spread the word to your buyers - and you might even get a New Year's kiss from them!

Here in Chicago, our Team has several buyers that would be impacted by this deduction extension.  One has monthly PMI payments approaching $150.  Although many borrowers, beginning a few years ago, decided against the PMI option, favoring high-leverage loans piggy-backed with a, higher-rate, usually interest-only second mortgage, many closing the second half of 2007 elected for the more-traditional Mortgage-Plus-PMI.

The Deduction Extension affects families who earn less than $100,000 annually (Adjusted Gross Income).  Those earning less than $109,000 each year may be eligible for a partial deduction.

Check out our post today on BlogChicagoHomes.com, as well as Real Estate Columnist Mary Umberger's Column in today's Sunday Chicago Tribune.  Umberger's column also has a comparatively optimistic housing projection and some updated statistics affecting the Chicago new home market from David Seiders, Economist from The National Association of Home Builders.

HAPPY NEW YEAR FOLKS - BE SAFE ON "AMATEUR NIGHT"!

DEAN & DEAN'S TEAM CHICAGO

P.S.  How 'bout them New England Pats?

 

Comments (1)

David Patterson
Columbia, SC
ibdp3

Dean:

Thanks for the update on the PMI Deduction Extension. I will have to update my Remind Your 2007 Buyer Clients about the Tax Relief and Health Care Act of 2006 post.

In response to your P.S. Congrats to the Pats. NOW........The real work begins. If they win these next three games, they will earn some high praise in history. If not......history will not treat them well.

Much Success to You in 2008!

Dec 30, 2007 06:40 AM