On December 18, 2015, the President signed legislation that renews the tax deductibility of mortgage insurance (MI) premiums for qualified borrowers through 2016.
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The deductibility is effective for purchase and refinance transactions closed after December 31, 2014. MI premiums paid or accrued after December 31, 2014 and through December 31, 2016 may qualify for tax deductibility on borrwers' subsequent federal tax returns as follows:
- Borrowers with adjusted gross incomes below $100,000 may deduct 100% of their MI premiums.
- For borrowers with adjusted gross incomes from $100,000.01 to $110,000, deductions are phased out at 10% increments for each additional $1,000 of adjusted gross household income.
Plus, Radian offers borrowers low monthly payments, 3% downpayments, and cancellable premiums. Now add in tax deductibility of MI premiums and it's clear - a conventional loan with Radian MI is the better alternative to the FHA!
To learn more about MI tax deductibility or how to boost affordability, contact us today!
