Private Mortgage Insurance is a protection for lenders when they lend on Conventional loans over 80% loan to value, and on all USDA, FHA and VA loans. The amount of PMI can range from $100 to $250 or more, depending on the value of your home.
Congress did renew the provision for deducting your Private Mortgage Insurance for the year of 2017. This means that if you secure a Conventional loan for over 80% of the sales price, and FHA and VA mortgages, you will be able to deduct that premium from your taxes in 2017. In order to receive a credit for it on your taxes, it must be your personal residence, and not an investment property. Also, the deduction is phased out for those that earn up to $109,000 in adjusted gross income.
Also, some mortgage loans charge an upfront PMI and no monthly PMI. In all likelihood the upfront premium would be deductible in 2017; provided your adjusted gross income does not go above $109,000. Deductible amounts phase down to zero for taxpayers with incomes up to $110,000.
This means that depending on the loan to value of your mortgage you will be faced with not being allowed to deduct several $1,000 on your taxes. Which will mean that you will forfeit the saving traditionally associated with the deduction.
Van Purser and his wife Jeanne are a licensed Real Estate Brokers in Georgia. Since1984 they successfully purchased and renovated over 400 homes. Their expertise is in representing Buyers or Sellers as an advocate; which means always ensuring their best interest. Additionally, they represented hundreds of clients over the years as an Associate Broker with Metro Brokers, RE/Max and now with his own firm. He and his wife, Jeanne, have been married since 1977. Van or Jeanne can be reached at 770-623-3313, or by email at firstname.lastname@example.org or email@example.com.