Anyone who purchases a home or refinances their mortgage in 2007 will be able to deduct mortgage insurance on their 2007 tax returns!
Any mortgage insurance, for new home purchases or refinances, issued between Jan. 1st and Dec. 31st, 2007 will be 100% tax deductible for borrowers whose adjusted gross income is up to $100,000. For every $1,000 they earn over that up to $109,000, the deductible percentage goes down by 10%. For example someone whose adjusted gross income is between $100,000 and $101,000 could deduct 90% of their PMI paid, etc. This applies to VA, FHA, and conventional loans with mortgage insurance.
Mortgage insurance facilitates home purchases for millions of people every year. Individual savings will vary depending on the size of the loan, and the borrower’s adjusted gross income and tax bracket. Your tax advisor can tell you how this new law would affect you. If you have any questions about this or about mortgages, please feel free to call me.
Mary Ann Becker, Progressive Mortgages 517-404-2151
My special thanks to Mary Ann Becker for sharing this news with me - and all of you! There are a few things to consider if you're shopping for a mortgage with less than 20% down. First, this will likely be of the most help to households with adjusted annual incomes between $50,000 - $100,000, and you need to itemize on your tax return to take advantage of this program. Have your lender run costs for a loan with PMI and the 'piggyback' option that best suits you to see which is best. It's also a good idea to discuss this with your tax preparer, too. For more information, see this link - http://www.usatoday.com/money/perfi/columnist/block/2006-12-11-mortgage-deduct_x.htm
And give me a call when you're ready to buy!
