Thursday, March 27, 2008

Don't Forget: PMI is Deductible

As April 15 tax day approaches, here is a reminder for home buyers with mortgage insurance.Home owners with adjusted gross incomes of $100,000 or less can deduct the full cost of their government or private mortgage insurance premiums on their 2007 federal returns.Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction.This is a new tax break that Congress has approved through 2010. "On average, this year's tax break could be worth $350 per taxpayer — an annual deduction that qualified home owners can take each year through 2010," says Kevin Schneider, president of the Mortgage Insurance Companies of America (MICA).

Source: MICA (03/26/08)

1 comment:

Jeremiah Arn said...

What a great point, Teresa. We continually educate our clients of these things, but its hard to overcome the anti-PMI craze.
As split loans become harder to find and qualify, I think more buyers will be looking at PMI. I just hope the PMI companies aren't the next shoe to drop in this credit crunch. While it wouldn't directly hurt borrowers, I think it would make it harder for Ohioans to move or buy a home.