Mortgage insurance is one of the things that I hate about doing mortgages. Many borrowers have told me they don't like the idea of paying an insurance on there mortgage, and the rates are KILLER to the DTI. The best part of mortgage insurance is the fact that it's tax deductible. So the borrower pays it in there monthly mortgage payment and they get an extra "X" amount of dollars back with there tax returns. But there was a lot of rumors going around that the mortgage insurance won't be tax deductable AT ALL.
Well, Excellent news from MGIC, a competitive mortgage insurance company.
Through 2010, Mortgage insurance will be tax deductible. But it's only for borrowers who make less than 100,000 dollars a year. And there's another stipulation to that. For every 1,000 dollars over the benchmark 100k, the tax deduction goes down 10%!!
So let people know that if they make 101,000 dollars a year they will only get 90% back in there mortgage insurance deduction. 102,000 dollars 80%, and so on, and so on....
A good thing that I personally just learned through one of my loans was the fact that MOST mortage insurance companies compute there rates off of a Co-Borrowers middle score. My main Borrower had a score of 672, and his wife had a 578. When I got underwritng conditions back they were telling me that the mortage insurance rate jumped 200 dollars!!! That was a new guideline as of November 1st, unfortunatley I didn't recieve any info on that, and I pull my hair out finding a mortgage insurance company that would go off of the primary borrowers middle score. Well I found one and the deal went through smoothly.
Be aware!
HAPPY HOLIDAYS!
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