PMI May be Deductible

Private mortgage insurance (PMI) is an extra cost for some homeowners. If you borrowed more than 80% of your home's value, you may have a PMI payment each month. Recently, tax laws made PMI payments deductible for some borrowers. You have to qualify with an adjusted gross income below $100,000, and this only applies to loans made after 12/31/06. For a nice introduction to the new law, listen to a recent Savage Money Podcast with Terry Savage. Find out where to get the Savage Money Podcast and how to subscribe.

Suggested Reading:

• Home Equity Loan Tax Deduction