Congress makes mortgage insurance tax deductible
Good news for those who have been forced to take out Private Mortgage Insurance on their loans. (Banks pretty much require it, if your loan is for more than 80% of your purchase price).
Congress passed a law that makes mortgage insurance tax deductible …
… The deduction applies only to mortgages that are originated in 2007 … And the deduction isn’t available for households with an income more than $110,000 a year.
Previously, it was perhaps in your best interest to take out one loan for 80%, and then take out a second, “piggyback” loan for the other 5, 10, or 15 percent.
With the new tax deduction rule, you might find it cheaper to take out just one loan, for 80, 85, or 90 percent.
Source: Mortgage Matters – By Holden Lewis, Bankrate.com
