President Signs Three-Year Extension of Federal Tax Deduction for Mortgage Insurance Premiums

THE WHITE HOUSE - Legislation to extend the federal tax deduction allowing homeowners with low
down-payment mortgages to deduct the cost of their government or private mortgage insurance premiums
for three more years has been signed into law by President Bush.

Qualified borrowers will be able to take the deduction if their insured
mortgage originates between 2007 and 2010.

The deduction was first approved late in 2006 and initially applied only to the 2007 tax year.
Extension of the tax deduction for mortgage insurance premiums was part of the
Mortgage Forgiveness Debt Relief Act of 2007 approved earlier this month by both the
U.S. House of Representatives and the U.S. Senate.

The tax break for mortgage insurance premiums is for families with an adjusted gross income of $100,000 or less. Families with incomes up to $109,000 are eligible for a partial deduction.