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Over the last couple of years, many homebuyers in the Kansas City & Overland Park area have been purchasing homes with minimuim to nothing down. Which have given many people the opportunity to buy a home that might have not had the chance in the past. With that thought, many folks had felt they didn't want to pay PMI insurance. PMI (private mortgage insurance) isn't a bad thing. It was the way for many of us to buy our first homes. Until recently, PMI was not tax deductible. Last year (2006), Congress had passed legstation to make PMI tax deductible iin 2007. Some of the points to know regarding this change:
* available on homes closing after January 1,2007.
* not restricted to first time buyers
* eligible borrowers include those with gross household income of $100,000/year or less
* it is the lenders responsibility to provide borrowers with year end statement reflecting PMI paid
* There is no grandfathering for this benefit (must have closed on a home in 2007)
* the legislation will expire on Dec 31,2007 unless it is renewed
One thought is that it might help those who have chosen to do 80/20 loan programs. Where the consumer has 2 mortgages to pay each month.
If you want information on PMI or further details on buying or selling a home in the Overland Park area, contact us via email or call us at 913-312-3614. |
