Monday, December 18, 2006

PMI Tax Deductible: 2007 News Flash

CNN reports that legislation has passed enabling borrowers who close their loans in 2007 and make less than $110k ($55k for individuals)to take mortgage insurance payments as a tax deduction.

Until now, only interest paid on a mortgage is deductible.

This legislation could be seen as an effort to support housing pricing,giving new support to high loan-to-value loans over 80% which previously required Mortgage Insurance as a non deductible cost.