PMI deduction extended

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.....

Let's party like its 1999

The big question out there: Is it time to buy, or not time to buy?

Here are the three latest sources to weigh in on the subject:

Time to buy

Forbes magazine: based on estimated 2008 inventory, sales rates, etc. the authors notes that Orlando has had a 2.4% decline but it is expected to turn around fairly quickly.

Not time to buy

PMI Mortgage Insurance Co.: Orlando is one of 11 metro areas with a greater than 50 percent chance of price declines over 2008 and 2009.

Time to buy

Jerry Jackson at the Orlando Sentinel: Resales of existing homes and condos had it's worse month in September in more than 8 and a half years.

Predicting the lowest point is a lot like predicting the stock market.....Yet remember, any home purchase can be a good investment if it is considered a LONG TERM investment.......