San Diego CA 92103

Phone:                      619-294-7900

 Fax:                         619-294-6520 

PMI will be a tax deduction through 2010

Congress has passed into law allowing the deduction of PMI (Private Mortgage Insurance) for purchases and refinances through 2010.  The tax deduction applies only to mortgages that are closed between 2007 and 2010.  This is a one-year deal, and Congress will have to renew the deduction to make it apply for the 2008 tax year and beyond. 

Basically, families with a household income of $100,000 or less will be able to deduct the full premium cost of PMI through 2010.  If you take the standard deduction instead of itemizing deductions, the new law makes no difference to you. 

        * Borrowers with adjusted gross incomes (AGI) up to $100,000 may deduct 100% of their 2007 - 2010 premiums.

        * Deductions are phased out in 10% increments for borrowers with AGI's between $100,000 and $109,000.

Affording a 20 percent down payment has always been the greatest barrier to homeownership, especially for first-time buyers.  Now there is no need to have 2 loans commonly referred to as 80/20.  It will now be possible for people in the low- to moderate-income to be able to purchase a home or refinance out of existing home mortgages up to the original loan amount.

 Contact us at: info@sucasamortgage.org

Su Casa Mortgage, Incorporated is licensed by the California Department of Real Estate # 01403501
and the Department of Corporations #C2298725.