Mortgage Insurance is Now Tax Deductible!
If you've been holding off on your decision to buy a home or refinance, I have got good news. Congress has passed legislation that will make mortgage insurance (MI) premium payments tax deductible for anyone who purchases a home after January 1, 2007. The tax deduction will be in effect throughout the 2007 tax year and may be extended by Congress soon.
If your family earns under $110,000 a year, or $55,000 per year for married couples filing separately, the new rule allows you to deduct the cost of the MI premium from your income on your tax return. It could ultimately save you hundreds of dollars over the course of the year.
Finally something has been done for the regular folks like us.