I just read this bit of news that is noteworthy for many many homeowners ... it came from the PMI newletter.. and here is a bit about the article. Relating to your 2008 tax return:
Thanks to the new federal law extension that allows eligible borrowers with adjusted gross incomes up to $100,000 to deduct 100% of their 2007-2010 borrower-paid MI premiums on their federal tax returns*.
The law is effective for transactions closed in 2007-2010. MI premiums paid in those years may qualify for tax deductibility on borrowers' federal tax returns as follows:
- Borrowers with adjusted gross incomes up to $100,000 may deduct 100% of their 2007-2010 premiums.
- Deductions are phased out in 10% increments for borrowers with adjusted gross incomes between $100,000 and $109,000.
When determining loan options that best meet your borrowers' individual needs, make sure to consider the following benefits of a loan with MI:
- MI premium payments are fixed and unaffected by rising interest rates
- MI is cancellable if borrower-paid**
- MI payment period is often shorter than term of piggyback
- Helps preserve access to future home equity
- Both loan interest and borrower-paid MI premium may be tax-deductible!
"The extension of this federal law has the potential to help thousands of low- and moderate-income Americans secure affordable mortgages that keep them in their homes and keep their communities strong."
This is news for many homeowners who are paying Mortgage Insurance, ask your lender what portion of your house payment is PMI or MI and make sure your accountant or tax preparer knows about the new guidelines.
If you are searching for a new home in the Austin Real Estate Market please call me, I can help you. gailnttexas@gmail.com or Gail Tassey 512-217-9482 Keller Willia
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