Congress recently made a provision for home buyers in 2007 that could save them hundreds of dollars per year on what used to be a total loss. As long as the Tennessee purchaser does not earn more than $100,000 per year in gross income they can now deduct their mortgage insurance. Although it is set to expire after one year, Congress can extend it.
Mortgage industry folks say that the tax break could save homeowners over $91 Million this year alone. First time home buyers will probably be helped the most with this break as most first timers usually don’t have the 20% down payment to avoid having to pay mortgage insurance. And premiums for mortgage insurance can be over a hundred dollars a month, but now folks can buy knowing that they’ll save a little extra on their tax bill next year.