Mortgage Insurance Fees to be Deductible

According to the 109th Congress - beginning in 2007 fees for mortgage insurance will be tax-deductible for a large number of homeowners. Mortgage insurance makes home purchases possible today and thus is the key to homeownership for millions of buyers. Lenders have traditionally wanted homebuyers to purchase with 20 percent down. The logic for this requirement is fairly clear: If something goes wrong and the home must be foreclosed, the lender is still likely to get back most or all of its loan balance.

Mortgage insurance help those buying a house get around the problem of having little money to put down on a house. Instead of putting up dollars buyers get insurance coverage. Lenders accept mortgage insurance because it performs the same function as 20 percent down: If a property is foreclosed lender risk is reduced because mortgage insurance pays for much or all of the lender's possible loss.

And now it seems that with this new legislation – Mortgage Insurance will become tax-deductible. For the specifics of this new legislation, click here. For all your Real Estate needs contact Nolting Real Estate at www.NoltingRealEstate.com and/or 636-391-9997.