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Insurance Fee Write-Off Continues

by Peter G. Miller
December 23rd, 2007

As mentioned several days ago, the Mortgage Cancellation Relief Act of 2007 extends the mortgage insurance write-off — including the insurance paid by FHA borrowers — until 2010.

Jeff Lubar with the Mortgage Insurance Companies of America — MICA — offers additional information:

Qualified borrowers will be able to take the deduction if their insured mortgage originates between 2007 and 2010. The deduction was first approved late in 2006 and initially applied only to the 2007 tax year.

The legislation now goes to President Bush for signing.

The tax break for mortgage insurance premiums is for families with an adjusted gross income of $100,000 or less. Families with incomes up to $109,000 are eligible for a partial deduction.

“Continuing this tax deduction will help low- and moderate- income consumers, particularly first-time home buyers who are unable to put down 20 percent,” said Kevin Schneider, president of the Mortgage Insurance Companies of America (MICA). “On average, the annual tax break could be worth $350 per taxpayer.”

Even with home prices declining in many areas, many families find it difficult to accumulate a 20 percent down payment so the need for insured mortgages with low down payments continues to grow.

“This important tax deduction is a crucial component in keeping the American dream of homeownership alive for many families,” said Suzanne Hutchinson, MICA Executive Vice President. “As risky, exotic loans are no longer considered viable housing finance options, more secure loans with private mortgage insurance remain readily available for qualified borrowers.”

If you want more information regarding private mortgage insurace, go to: www.privateMI.com.

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This entry was posted on Sunday, December 23rd, 2007 at 12:20 pm and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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