Mortgage Insurance may now be Tax deductible…

In late December of 2006, congress passed legislation making private mortgage insurance tax deductible in some cases. Private Mortgage Insurance, typically required when a borrower has a loan to value that exceeds 80%, has not been tax deductible for primary homes since the 1980’s. The new legislation does have several parameters that a consumer should pay close attention to. Some of the specific parameters are...

• It is only on new mortgage originations with mortgage insurance
  
  
• The household income (Adjusted gross income) may not exceed $100,000 per yr to receive full deduction
  
  
• The deduction is phased out and not deductible above $110,000 in income.

For many years, the real estate community has had a general misconception that MI was a bad thing and should be avoided. MI, just like most anything in our industry, may or may not be the best solution for you. It depends upon your specific situation. The state of North Carolina made MI slightly more attractive several yrs ago when legislation prescribing when MI can be eliminated was introduced. So to assume Mortgage Insurance is the right choice or the wrong choice ALL THE TIME is an incorrect assumption. Even with the new legislation there may be times when MI is not right for you. And there will surely be times when it is right for you. Get the facts and you can make better financial decisions.

Please call or email any of our Loan staff to get more specific information about whether you may be able to take advantage of this new tax benefit. And also to help you make informed financial decisions about your future. KNOW THE FACTS , KNOW YOUR OPTIONS.