As I mentioned in my last post, I am providing an update on some of the latest laws passed relating to home ownership.
Today the topic is PMI: private mortgage insurance. PMI is required as part of your monthly payment to the mortgagor when you did not put down 20% or more in the purchase of your home. The insurance is to cover the mortgagor---not yourself.
The good news is that Congress voted to extend the deductibility of PMI premiums until January 1, 2010. If your adjusted gross income is below $100,000, you are eligible for a full deduction; it is phased out after your adjusted gross income is above $110,000. You also had to purchase your home after 2006.
If you have any questions, it is best to talk to your tax expert. I know enough to tell you to talk to someone who knows all the details! I hope this information points you in the right direction. Good luck on your tax filing this year.....
