During the down economy and hard-hit housing market of 2007, the private mortgage insurance (PMI) deductible was passed by Congress. Basically, when a home buyer doesn't have a lot of money to spend on a down payment (less than 20 percent), lenders often make that home buyer purchase PMI.
The good news for most home buyers who do purchase PMI is the premiums are tax deductible. This tax deduction was recently extended to Dec. 31, 2016, so this is a good year to take advantage of it.
According Yahoo, this is how the deduction breaks down:
To qualify for the tax deduction, a home buyer must meet some specific criteria. According to Houselogic.com, the home buyer must have a loan from 2007 or later and have the mortgage in question for a primary residence or non-rental property.
If you are ready to buy this year, make sure to contact us. Our mortgage team members will help you with any questions you may have about PMI deductibles and anything else related to your loan. We understand you're making a commitment in purchasing a home, refinancing a mortgage, or tapping into your home equity. So we make a promise to you: We will help you qualify, apply and be approved for the ideal mortgage loan for you.
Give us a call at 408.626.1879.