President Obama has signed a bill that has extended the tax deduction of Mortgage Insurance thru 2011. Here are the rules to remember in regards to this tax deduction:
- your purchase or refinance loan must close before Dec 31st, 2011
- household income must be $100,000 or less to get the full write off of the insurance premium.
- the amount of the write off is reduced by 10% for every $1000 over $100k. With it phasing out at $109,000. meaning if you make over $109k as a household you can not write off mortgage insurance
- it applies to your primary home and one other residence that the tax payer uses.
- all forms of mortgage insurance qualify for this. So if you have a fha or conventional loan, they qualify. If you have paid upfront mortgage insurance with a VA,FHA or USDA loan you can also use this as a tax deduction. The amount is just divided over a 7year period.
This is great news!! I am not a CPA, so please contact your tax preparer with any specific questions. Mortgage Insurance is just one thing to take into account when choosing a loan. Call me today to make sure you are getting the best mortgage possible.