Mortgage insurance will be tax deductible for some home buyers (Pittsburgh Post-Gazette)

Mortgage insurance will be tax deductible for some home buyers (Pittsburgh Post-Gazette)
Mortgage insurance will be tax-deductible in 2007. For some homeowners, the new law means it will cheaper to get mortgage insurance instead of getting piggyback loans.


Essentially this means that instead of getting a piggyback loan (which was tax deductible) you can now deduct the cost of PMI on your taxes. Given that PMI is typically cheaper than the interest rate on the piggy back loan this makes this a viable option again. Please note this is a federal change so everyone benefits.

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