I just wanted to clarify this issue since I had posted about this on a previous blog. Mortgage insurance will be tax deductible for 2007 however there are some important things to note before you count on this.
The tax deduction applies only to mortgages that are closed in 2007. If you have a loan with mortgage insurance in 2006, you won't be able to deduct the premiums in the 2007 tax year unless you refinance in 2007.
The income limit for the deduction is 100,000 per year over that the amount of deduction decreases, and at 110,000 it is not a deduction you can take.
This is a one-year deal, and Congress would have to renew the deduction to make it apply for the 2008 tax year and beyond. Congress probably will extend the deduction, but you can't know for sure.
I thought these were pretty important and could impact a clients decision on how to finance his / her house. I always advise my clients also to check with a tax professional regarding deductibility of anything because tax law can change as often or more often than some loan programs we have.
Hope this helps.
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