PMI to be Tax Deductible in 2007
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Good news for those of you buying in 2007 with less than 20% down! In most cases, your PMI premium will be tax deductible once Bush signs it! There is a limit on the income allowed for the deduction though. Looks like it is going to be only for borrowers earning less than $110,000.
PMI is private mortgage insurance for the lender in case of a loan default. This is great news since in the past PMI has been money thown out the window with no tax advantage at all. It does nothing for the buyer at all. Of course, the best scenerio is to have 20% down or do some sort of combo loan so you will not have to have PMI at all because it can be quite costly.
