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Mortgage Insurance Tax Deduction May End

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Mortgage Insurance premiums have long been tax deductible on your Federal taxes.  Starting in 2012, the deduction is no longer valid.

 

This deduction expired on Jan 1, and could effectively increase the costs of homeownership --on top of the increased costs imposed by Congress on all new conventional and FHA loans.

Mortgage insurance is used for certain low-downpayment loans, where there is less than 20% equity put into the home.   Borrowers using VA and rural housing loans will also be affected.

The mortgage insurance premium deduction started in 2006 and it allowed buyers and refinancing homeowners to write off their premiums when they take loan that includes private (PMI) or federal insurance guarantees (FHA or VA).

 

About John Krystof

John Krystof writes about personal finance and money matters for RateZip.com. He was born and educated in Central Europe, but presently resides in New York City.

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