An Update on PMI Tax Deductions

RE:An Update on PMI Tax Deductions

missy — Mon, 25 Aug 2008 11:00:00 GMT

I've been trying to research this PMI deduction and can't find any definitive answers to our situation. We just purchased a second home to use as rent for profit as well as the 14 days allowed for personal use. We only put 15% down and the mortgage company is telling us that PMI is a tax deduction. From what I read on irs.gov, if your AGI is more than 109K the PMI cannot be added into your basis and would not be deductible. Also, if the PMI is related to a second home, it's not deductible...can anyone verify if that's true?

RE:An Update on PMI Tax Deductions

Rex — Thu, 31 Jul 2008 11:00:00 GMT

I purchased a house in 2006 and I did not put 20 % down. This is my second house I have purchased in my 20 years of being in the Marine Corps. My question to anyone.......It is now 2008 and I was told by my neighbor that my tax preparer should have filled out a form to claim my PMI, is this correct? Also, I was told if my house appraises for a certain amount, I could have my PMI drop, unfortunately with the market the way it is, my house will not appraise anyone know of any other way for me eliminate my PMI? I am still learning all of this, so please bare with my ignorance. Thank you for your time and answers in advance.

RE:An Update on PMI Tax Deductions

Gordon — Tue, 27 May 2008 11:00:00 GMT

Does anyone know what the PMI rate is per 100,000?

RE:An Update on PMI Tax Deductions

Bobby — Thu, 10 Apr 2008 11:00:00 GMT

The PMI tax deduction has been extended. So everyone bashing the government needs to tone it down and relax. If you don't want to pay PMI or get stuck with a higher rate from TAMI, then learn to save some money and put 20% down. There are many at fault for this mortgage environment, but the consumer society we have because is partially to blame. Stop buying the latest technology or the little bit more expensive cars.

RE:An Update on PMI Tax Deductions

Cyndee — Mon, 17 Mar 2008 11:00:00 GMT

Why do we have PMI and who does it protect?

RE:An Update on PMI Tax Deductions

Debbie — Sat, 26 Jan 2008 13:00:00 GMT

Its pretty sad our goverment cant seem to do anything for its citizens.....if you have PMI insurance as of 2007 and only 2007 you got a tax break ...wow ...such a help for everyone struggling to pay it...as high as 258.00 a month it should be illegal...at that rate it seems to cause more hardship on keeping a mortgage current....but thats the goverment does nothing beneficial it wouldnt want to hurt those big companies .........

RE:An Update on PMI Tax Deductions

Marianne — Thu, 24 Jan 2008 13:00:00 GMT

I agree with Irvin. What about the rest of us who purchased our homes or refinanced prior to 2007? What is being done to extend this relief to all Americans? Note, the folks who are experiencing hardships due to declining FMV, adjustable rates, predatory lending and exotic loan products are not the people who purchased or refinanced in 2007. This doesn't make any sense!!!

RE:An Update on PMI Tax Deductions

Irvin Wilson — Tue, 09 Oct 2007 11:00:00 GMT

link to IRS article regarding PMI is http://www.irs.gov/faqs/faq11-2.html if this can be imbedded in the comment. - irv

RE:An Update on PMI Tax Deductions

Irvin Wilson — Tue, 09 Oct 2007 11:00:00 GMT

It should be noted that PMI is tax deductible on investment (rental) properties just like any other expense. This is a common misconception and has nothing to do with the legislation spoke of here. I can't put html in this comment but if you go to the IRS website (irs.gov) and search for PMI you'll see proof from the IRS itself.

RE:An Update on PMI Tax Deductions

Anonymous — Sun, 16 Sep 2007 11:00:00 GMT

What an outrage! God forbid the government gives any relief to homeowners who got suckered in by the low interest bait and switch scam of Bush's first term.

RE:An Update on PMI Tax Deductions

Grant — Tue, 26 Jun 2007 11:00:00 GMT

Can you refi 20% of the original cost of the loan and then ask for the PMI to be dropped. I was under the impression that if you refinanced for 15 years and paid it off early it would be better than paying the cost of pmi which in no way benefits you the borrower

RE:An Update on PMI Tax Deductions

Ricardo Cobos — Mon, 25 Jun 2007 11:00:00 GMT

Is PMI Tax Deductible? There has been a lot of talk about whether or not PMI is tax deductible lately. In fact I recall a minor news blurb in the waning days of 2006 where they mentioned that President Bush had signed a bill that made law the PMI was deductible as mortgage interest. However, when you try to research the topic, there appears to be conflicting information out there about it. Does anyone know authoritatively what the law says and please provide the talking points.

RE:An Update on PMI Tax Deductions

Mike — Thu, 17 May 2007 11:00:00 GMT

Can a buyer have a seller pre-pay the PMI policy, or the buyer pre-pay the policy so the entire PMI for the loan is deductable in 2007, instead of spreading out the premiums beyond 2007?

RE:An Update on PMI Tax Deductions

Jeff — Fri, 13 Apr 2007 11:00:00 GMT

>It beats traditional PMI in almost every single scenario. John, actually it doesn't. With TAMI or lender paid PMI, that cost sticks with buyer for the full term of the mortgage. With traditional PMI, the extra cost is typically paid off within a 7-9 year timeframe.

RE:An Update on PMI Tax Deductions

John — Thu, 22 Mar 2007 11:00:00 GMT

Actually Mary, that does still exist! It is called "Tax Advantage Mortgage Insurance" (TAMI for short). Essentially, a borrower takes a slightly higher rate and is not charged a traditional PMI factor. Since home mortgage interest is tax deductible (consult your tax advisor), the PMI is converted into interest, and is now deductible. It beats traditional PMI in almost every single scenario.