Main Line Homes Blog

head_left_image

Mortgage Insurance now tax deductible!

Yes, you read that headline correctly, but there are some key provisions according to the Pennsylvania Association of Realtors, so read on.

Firstly the idea is to help those most unable to buy a home and give them some relief from 80-20 mortgages to avoid PMI.

Key Provisions:

  • Applies only to mortgage insurance policies issued in 2007
  • Does not apply to premium payments for policies issued in prior years
  • Applies to private mortgage insurance and to FHA, VA and Rural Housing premiums. The premiums will be treated as mortgage interest.
  • Is available only to individuals or families with less than $100,000 adjusted gross income on a joint or single tax return ($50,000 for married filing seprate returns)
  • The provision phases out by 10% for each $1,000 of income over $100,000 ($50,000 for married filing seperately). Therefore there is n o deduction for individuals or families with incomes over $110,000 ($55,000 for marrieds filing seperately).
  • Individuals who claim the deduction are not allowed to pre-pay the premium that are otherwise due after 2007. The provision expires for any premium payment that is paid or that accrues after December 31st 2007.
  • If a mortgage (other than a VA, FHA or RHA mortgage) is pre-paid during 2007, the unammortized premium balance on that mortgage is not deductible. (The unamortized premium balance is the amount of the premium that would have been paid in a particular year if the payments had extended throughout that year)
  • The homeowner will receive a statement from either the lender or the mortgage insurance provider stating the proper amount of the deduction. That information will also be provided to the IRS.
  • The deduction will not be available if an exisiting mortgage is refinanced in 2007 for an amount larger than the amount being refinanced.

Hope this helps you, any comments from mortgage brokers or bankers to clarify or comment gladly accepted...

If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you,  contact us or connect

  Twitter link  Linked in linkl our blog RSS feed of MainLineHomes Blog

Feel free to subscribe to our blog to stay up to date with our latest posts and information on the Tredyffrin Easttown and Main Line Real Estate Market. 

 

Comment balloon 0 commentsNick Vandekar, 610-203-4543 • March 04 2007 11:03AM
Mortgage Insurance now tax deductible!
share
Yes, you read that headline correctly, but there are some key provisions according to the Pennsylvania Association of Realtors, so read on. Firstly the idea is to help those most unable to buy a home and give them some relief from 80-20 mortgages to… more
Some comments on real estate in 2007
share
We all hear these wonderful predictions about the market and the economy. I attended an event yesterday where John Tucillo a renowned economist and speaker was talking and just wanted to share some of the highlights. He started off with some… more
1920's Downtown Wayne PA Rehabbed Colonial.
share
Welcome to this wonderful renovated 1920's colonial in downtown Wayne. The main floor has 9 ft ceilings and features a large living room with wood fireplace, dentil molding and chair rail, enter the the heated and air conditioned family room. The… more
Daylight Savings
share
SPRING FORWARD, FALL BACK… OR IS THAT SPRING BACK AND FALL FORWARD? In any event, Daylight Saving Time (DST) will be springing a bit further this year. Back in 2005, Congress enacted the Energy Policy Act, which will extend DST by one month -… more
County Housing Market Update
share
Home sales in Delaware County decreased by 5. 5 percent in 2006, but saw less of a decline than other counties in the region, further evidence of the housing market adjustment, according to a recent report. However, sales in Montgomery and Chester… more
Urbanism and Town Centers
share
We are seeing a lot of urban town center projects in our area. There are two planned developments that i can think of right now, Worthington Urban town Center in Malvern, there was an article in the Philadephia Inquirer this week that identifies… more
Deed scam, You don't need this company!
share
Consumer Alert: Certified Deed Scam At every settlement we warn Tredyffrin Easttown home buyers that they will get a deed prepared by the Title company after closing. This deed will have been correctly prepared and recorded. There is no need to pay… more
Can you get a PA property tax rebate?
share
PA Property Tax/Rent Rebate Program This year, thousands of additional local residents will be eligible for hundreds of dollars in property tax and rent rebates. In 2005, Pennsylvania lawmakers expanded the number of residents eligible for a $650… more
No increase in the Pennsylvania Realty Transfer Tax
share
Good news! Governor Rendell's proposed budget did not include an increase in the Realty Transfer Tax. In his proposed 2007-2008 budget provided to the General Assembly, Governor Rendell did not recommend an increase in the Realty Transfer Tax to… more
Chester County seeks your input for smart growth initiative
share
Chester County's Planning Commission is in the process of rewriting its 10-year-old "Landscapes" plan, designed to help the county "bring growth and preservation together" through smart growth initiatives. According to the… more