Paying Mortgage Insurance? Take a Deduction in 2010.
March 8, 2010 | 
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Homebuyers who do not have sufficient funds to make a full down payment on a home may be required to obtain mortgage insurance to guarantee the loan.
Historically, mortgage insurance premiums were not considered the same as interest paid on a mortgage and were not deductible. However, for a limited period of time, mortgage insurance premiums can be treated as qualified residence interest and deducted. There are some restrictions:
- Premiums must be paid or accrued for qualified mortgage insurance obtained in connection with acquisition indebtedness on a qualified residence.
- Premiums must be paid or accrued after 2006 with respect to mortgage insurance contracts issued after 2006.
Right now, this provision is limited. Unless it is extended, it will not be available after 2010.
Submitted by Sam Cohen
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2 Comments to Paying Mortgage Insurance? Take a Deduction in 2010.
Theda Dorka
June 1, 2010 at 5:29 am
I have been looking for this kind of info for some time and I have a few questions. Would you mind answering them if I ask them here? Thanks.
ssedlak
June 1, 2010 at 6:11 pm
Of course. I will do my best to answer.