A closer look at mortgage insurance
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Transcript of A closer look at mortgage insurance
A CLOSER LOOK ATMORTGAGE INSURANCE
BLOWNMORTGAGE.COM
BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008
Did youknow yourmortgageinsurancemay be
deductible?
BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008
Under certain conditions,the Internal Revenue
Service (IRS) reports thathomeowners may
deduct their mortgageinsurance premiums
when filing their federaltax returns.
BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008
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.
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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.
BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008
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.
BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008
Taxpayers shouldfollow the
instructions anduse the worksheet
for Schedule A,Line 13 to figuretheir mortgage
insurancededuction.
BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008
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.
BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008
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
LENDER HOTLINE: 888-581-5008
C L I C K H E R E
BLOWNMORTGAGE.COM LENDER HOTLINE: 888-581-5008
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
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