It has been a rough year for the real estate market & mortgage industry. But this week there was some good news, the US Congress extended legislation that makes mortgage insurance payments tax deductible until 2010. This legislation is one of the “bright spots” that will really help new and existing homebuyers for the next three years. Deducting the cost of mortgage insurance tax returns is expected to SAVE eligible borrowers $200 – $400 a year. The tax legislation, originally approved in December 2006, is basically the same expect for the three year extension. Borrowers whose annual adjusted gross income is $100,000 or less can fully deduct their mortgage insurance premiums from their 2007 – 2010 tax returns for homes purchased or refinanced during those time frames. Borrowers with incomes between $100,000 and $109,000 are eligible for a reduced tax break under the law. You can contact me if you further questions.
Below are some great links and a video that really help explain & understand mortgage insurance (MI) and last year’s tax legislation.
News Story – One Step Closer To The American Dream!