Turbulence in the mortgage marketplace has been big news in 2007. But here's something bigger...and better! MI Tax Deductibility is back and this time for three more years.
This week, our United States Congress has approved or renewed several tax relief measures to keep the dream of homeownership alive for both new homebuyers and existing homeowners. The extension of MI tax deductibility is top among them. 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 features borrowers want today, including Genworth's optional and FREE Involuntary Unemployment Insurance and pre/post purchase counseling assistance.
- 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.