Mortgage Insurance Continues to be Tax Deductible

By
Mortgage and Lending with Free State Mortgage, LLC

 Happy Face

Some GOOD News for a Change 

Mortgage Insurance (PMI) continues to be tax-deductible through the year 2010.  Since 80/20 loans are now just about obsolete, a ONE loan with PMI is a excellent way for borrowers to purchase a home with essentially NO MONEY DOWN. 

  • Households whose adjusted gross income is $100,000 or less can deduct 100% of their MI premiums. (The deduction is reduced by 10% for each additional $1,000 of adjusted gross income, phasing out after $109,000.)
  • The deduction applies to "qualified residences," as defined in the Internal Revenue Code. Generally, that includes the borrower's primary residence and a "non-rental" second home. Investor properties are not eligible.

Borrowers should always consult with a professional tax adviser for details about MI tax deductibility.

Comments (2)

M. Suzi Woods (Gravenstuk)
NOW Sharing the life and spice of the GC one day at a time - Grand Canyon, AZ
Suzi Woods, Prior Independent REBroker in MS
Daniel, I read quite a few Mortgage blogs. I appreciate you keeping yours short, simple, and targeted.
Dec 22, 2007 08:30 PM
Daniel Eckenrode
Free State Mortgage, LLC - Hagerstown, MD
Thank you, most of the time the facts are only whats needed without all the dialog.
Dec 24, 2007 01:17 AM