12/19/07
President Bush is expected to sign legislation that will continue to allow low and moderate income homeowners to deduct their private mortgage insurance premiums from their taxes through 2010.  All homebuyers with adjusted gross incomes below $100,000 will be able to deduct 100% of their mortgage insurance costs. 

This is great news for home buyers who plan to put less than 20% down when they buy.  It makes the 1 loan with PMI option a more viable one… in the not so distant past, the majority of financing was being broken into 2 loans.  For instance, an 80% first, and then a higher rate 10 or 15% second mortgage BUT there was no mortgage insurance.  Home buyers should now compare this option with the 1 loan option and see what makes the most sense.