Some good news from all this fiscal cliff nonsense we seem to go thru on an endless cycle. Recent legislation means conventional MI premiums are tax deductible for premiums paid on home mortgages through December 31, 2013, retroactive for 2012 (deductibility was previously allowed to expire on December 31, 2011). This means there's no interruption in MI tax deductibility through December 31,2013. Â Â
With tax deductibility renewed for another year make sure you ask your loan officer the pros and cons of conventional mortgage insurance, there's never been a better time to takeÂ a closer look at mortgage insurance. Even on a refinance this is an option you should review closely. If you have 15% equity and good credit, mortgage insurance is usually very inexpensive.
Â MI tax deductibility is one more reason to buy a home while the rates are still low. I HIGHLY recommend as a first time buyer you consult a CPA or tax professional in your state. Even the popular so called MI buyouts are deductible according to a few CPAâ€™S I asked. It may not be in your 1098 year end statement from your mortgage company but a good CPA will ask for your settlement sheet to ensure you receive all the deductions to which you are entitled.Â Â
Contact me today to take a closer look at how the renewed MI tax deductibilityÂ
can benefit a Â borrower who qualifies (certain restrictions and limitationsÂ Â Â
Senior Loan Officer
1ST Mariner Mortgage
Lending in all 50 states