Las Vegas Real Estate News Blog

Private mortgage insurance has always been a way for homebuyers with lower down payments to qualify for mortgages.  By “insuring” their mortgages, they have been able to buy attractive interest rates and loan programs.  But the cost of PMI has been expensive, and that expense has never been a deduction from Federal income taxes.  In December, 2006, this expense became deductible for many homebuyers.  Rather than take a 1st and 2nd mortgage in order to put the 20% down payment into the purchase, homebuyers might now have a benefit from the cost of PMI.   This would make it more attractive to use a minimum down payment, rather than taking 2 mortgages on the property, usually at much higher interest rates.  Homebuyers should check with their accountants for the suitability of this deduction in 2007.  For other homebuyer tips, contact Las Vegas Properties today!