A closer look at mortgage insurance

A CLOSER LOOK ATMORTGAGE INSURANCE

BLOWNMORTGAGE.COM

BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008

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Did youknow yourmortgageinsurancemay be

deductible?



Under certain conditions,the Internal Revenue

Service (IRS) reports thathomeowners may

deduct their mortgageinsurance premiums

when filing their federaltax returns.



Generally, mortgageinsurance premiums paid to

a government agency orprogram as well as privatemortgage insurance (PMI)

premiums connected to thepurchase of a taxpayers

primary residence isdeductible as long as the

taxpayer itemizes theirdeductions.



Taxpayers who make monthly paymentsmay deduct all or a portion of the amount

paid depending on their income.Homeowners who made a lump sum

mortgage insurance premium payment atthe time of purchase may be eligible to

deduct a portion of the premium providedthe mortgage insurance covers the taxyear for which they are filing a return.



The amount of thededuction is limited if thetaxpayer’s adjusted grossincome exceeds $100,000

($50,000 if married andfiling separately). Taxpayers

whose gross adjustedincome exceed $109,000 or$54,500 if married and filingseparately may not deduct

mortgage insurancepremiums.



Taxpayers shouldfollow the

instructions anduse the worksheet

for Schedule A,Line 13 to figuretheir mortgage

insurancededuction.



It is important that taxpayers understand thatmortgage insurance is NOT the same as

homeowners insurance. Mortgage insurance istaken out when a new mortgage is approved.The amount varies depending on the value of

the house and the amount of the down payment.Unlike homeowners insurance, which protectsthe property and investment of the individual(s)

owning and living in a residence, mortgageinsurance or PMI protects the lender’s

investment.



Neither mortgageinsurance nor

homeowners insuranceare required by law,

however, either (or both)may be required by

lenders as conditions of aloan. Homeowners need toread their loan documentscarefully to determine and

understand therequirements for their

specific loan.BLOWNMORTGAGE.COM

LENDER HOTLINE: 888-581-5008


T O L E A R N M O R EBLOWNMORTGAGE.COM


C L I C K H E R E



Justin McHood is Americas MortgageCommentator and has been providing

Mortgage commentary for over 10 years.

INFORMATION PROVIDED BY: JUSTIN MCHOOD

MORTGAGE COMMENTATOR

Information Originally Published:March 12, 2009


http://mortgagecommentator.com/

http://www.blownmortgage.com/a-closer-look-at-mortgage-insurance/

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A closer look at mortgage insurance