Monday, January 16, 2012

No More Mortgage Insurance Deduction

A key tax deduction for recent home buyers expired on Jan. 1, as Congress declined to extend the write-off for various types of mortgage insurance.

The change affects anyone who bought a home or refinanced a mortgage since 2007 with less than a 20 percent down payment or equity in their existing home. Homeowners who took obtained their current mortgage prior to 2007 were not eligible for the deduction.

The change affects borrowers with private mortgage insurance (PMI), common on Fannie Mae and Freddie Mac-backed loans, as well as those with FHA, VA and USDA loans. The government-backed loans have their own insurance charges instead of PMI.

Eliminates deduction for annual and upfront premiums

Read the rest of the article at Mortgage Loan

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