New Federal Law Provides 2007 Tax Deduction for Mortgage Insurance

Home buyers reviewing loan options this year have a great new deduction to consider. A new tax deduction allows many qualified buyers the ability to write-off premiums for private (PMI) and government mortage insurance on loans that close in 2007.

 The deduction was adopted by congress and signed in to law by President Bush in December. It applies to borrowers who buy or refinance a home this year if their adjusted gross income is $100,000. or less. Families with incomes of more than $100,000.and up to $109,000.will be eligible for a reduced reduction. but

As always you need to check with your accountant or loan officer to see if this applies to you and remember it pertains to properties that close in the year 2007 and on federal taxes for the year 2007. For more information, go to www.privatemi.com.