Wednesday, December 13, 2006 2:39 PM
Sam Chapman
New Tax Write-off For Home Buyers
There is good news out for some home buyers. Starting next year, people with less than a $100,000 income will be able to write off their Private Mortgage Insurance (PMI) payments. PMI is required when people who purchase homes don't put 25% or more down on the home. To get around the 20% down thing, many people will take out several loans that add up to 90%-100% financing. This helps them to avoid PMI, but the combined loans generally have higher interest rates than a single loan. So this write-off is a great break. Noe only will it give home buyers a tax breat, but they will be able to avoid the higher interest rates associated with the multiple loan programs.