PMI Tax Deductibility Extended Through 2011

Congress has once again extended legislation that makes mortgage insurance (MI) tax deductible for many Americans. The new legislation ensures the tax deductibility of MI on purchase and refinance loans for qualified borrowers through the end of 2011. The legislation itself is no different than what was originally passed in 2007. The MI premiums are still fully deductible for taxpayers earning up to $100,000, and partially deductible for those with incomes between $100,000 and $109,000.

Extending MI tax deductibility is an important win for many reasons including:

• Tax relief is much needed in a time of struggling economic recovery, and continues to help protect the dream of homeownership for many.
• MI is not only safe and predictable, but it’s also cancelable once the loan amount drops to 78% of the original sales price OR 20% equity can be proven through an appraisal after two years history of timely payments