Congress Sticks A Knife In The PiggyBack December 16, 2006Posted by Jay Medina in News and Information.
This is very good news for homeowners! As a reminder, if you’d like to purchase or refinance your home for 2007 to take advantage of this new tax break, you can get started now and close in early 2007; right when the new law takes effect. Give me a call and ask for details.
Here is the article:
SORRY, PIGGY: Congress passed a law that makes mortgage insurance tax deductible. For a lot of borrowers, this will tip the balance in favor of paying mortgage insurance instead of getting a piggyback loan. Premiums for all types of mortgage insurance are deductible: private, FHA, VA, rural housing service.
I’ll write about it in detail in a story to be published online Thursday and to be sent to newspapers over the weekend. A couple of caveats: The deduction applies only to mortgages that are originated in 2007. So if you’ve been paying mortgage insurance on your current loan, you won’t be able to deduct the mortgage insurance premiums unless you refinance in 2007. And the deduction isn’t available for households with an income more than $110,000 a year.