Mortgage Insurance Tax Deductible
Mortgage Insurance Tax Deductible
Mortgage Insurance tax deductible in 2007 for some Delaware homeowners. This means for some home owners looking for a 100% financing, it may be cheaper to get one mortgage with mortgage insurance rather than a piggy back loan. A piggy loan is a 2nd mortgage loan that is used in conjunction with a first mortgage loan that is only 80% of the purchase price to avoid paying mortgage insurance. If you have questions about mortgage insurance feel free to call 302-703-0727 to speak to a Delaware Loan Officer.
Update for 2014 – Mortgage Insurance Tax Deductible Still! Watch Video Below to get the details:
The 109th Congress passed the tax law in its final hours of 2007. Hundreds of thousands of homeowners will save a total of $91 million when they file their tax returns in 2008, according to estimates prepared by the mortgage insurance industry because they will be able to deduct the mortgage insurance they paid on their mortgage loan.
Bottom line for Delaware consumers: Don’t get a piggyback loan without taking a serious look at mortgage insurance, because mortgage insurance is likely to be cheaper in the long run, and it might even cost less in the short run.
Mortgage Insurance Options:
You have three options for mortgage insurance for a Mortgage Loan for conventional financing: borrower paid monthly mortgage insurance premium (BPMI), Single Premium Borrower Paid Mortgage Insurance, and lender paid mortgage insurance (LPMI). You can choose to pay monthly for the mortgage insurance as part of your monthly mortgage payment with BPMI. You can buy out the monthly mortgage insurance by paying a single premium mortgage insurance fee at closing or you can take a slightly higher mortgage interest rate and have the lender pay it for you with LPMI.
The monthly mortgage insurance is now tax deductible for most home owners on their Federal Tax Returns with the passage of the new bill by the United States Congress.
If you would like to apply for a Delaware Home Loan, you can APPLY ONLINE HERE, you can call John R. Thomas at 302-703-0727 .
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713
