MILWAUKEE, Dec. 20 /PRNewswire/ — President George W. Bush today signed into law new tax legislation allowing the deduction of mortgage insurance premiums on federal income tax returns. This new deduction is a major victory for homebuyers. Under the law, borrowers closing loans to purchase homes in 2007 who have an annual household income of $100,000 or less will be able to get a low-down-payment mortgage and deduct the full cost of their mortgage insurance premiums on their federal tax return.
“The President’s approval of this important deduction will encourage families to seek out the American dream of homeownership by directly saving low- and moderate-income borrowers money,” explains Patrick Sinks, president and chief operating officer, MGIC. “Mortgage insurance has long provided a safe and smart way for families to afford a home. With this new deduction, it becomes all the more sensible at a time when both interest rates and housing costs are on the rise.”
The legislation has been widely supported by consumer, business, tax payer, civil rights, civic and labor groups.
About MGIC Investment Corporation
MGIC (http://www.mgic.com/), the principal subsidiary of MGIC Investment Corporation (NYSE:MTG) , is the nation’s leading provider of private mortgage insurance coverage with $173.4 billion primary insurance in force covering 1.3 million mortgages as of September 30, 2006. MGIC serves 5,000 lenders with locations across the country and in Puerto Rico, helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality.
Source: MGIC Investment Corporation
