For the 2007 tax year, the Congress is allowing Mortgage Insurance to be TAX DEDUCTIBLE for families with ADJUSTED GROSS INCOMES (AGI) up to $109,000!! (To get full credit for the PMI, the borrowers' AGI cannot exceed$100,000; the eligibility is reduced by 10% up to a max AGI of $109,000)
Remember, this is AGI, which means that borrowers with householdunadjusted gross incomes possibly as high as $125,000 can qualify forthis benefit!!Why is this important?? In recent weeks, the rates, and cost, forsecond trust financing has skyrocketed, due to investor worries aboutincreased levels of foreclosure. These second trust products are not as attractive to the buyers in the current market. With PMI becomingtax deductible, your buyers can benefit by still achieving a low/nodownpayment, keeping total payments lower, only having one payment tocontend with, and getting the expanded tax benefits for having to payPMI, which serves to reduce their overall annual housing expense burden.
Contact The Author
Welcome to our blog! Whether you want to buy or sell a home, Our goal is to provide you with the information you need and the care you deserve! We can provide the highest level of service and commitment, and we hope to have the opportunity to help you buy or sell your next home! Feel free to call us anytime at 703-815-5204 or send us an e-mail.