The PMI Group, Inc. Applauds Congressional Action to Extend Tax Deductibility for Mortgage Insurance Premiums

The PMI Group, Inc. Applauds Congressional Action to Extend Tax Deductibility for Mortgage Insurance Premiums WALNUT CREEK, Calif., Dec. 18 /PRNewswire-FirstCall/ — The PMI Group, Inc. applauds Congress for passage of new legislation extending a tax provision that enables low- to moderate-income homebuyers to deduct the cost of mortgage insurance premiums from their federal income tax returns until 2010.

“This legislation has the potential to help thousands of low- and moderate-income Americans secure affordable mortgages that keep them in their homes and keep their communities strong,” Steve Smith, Chief Executive Officer of The PMI Group, Inc. and PMI Mortgage Insurance Co., commented today. “The median home price in the United States today is over $200,000, which means borrowers would need to save more than $40,000 in order to make a traditional down payment of 20 percent.

Making the cost of mortgage insurance tax deductible for qualified borrowers creates opportunities for more Americans to secure safe, predictable mortgage loans with a down payment of as little as 3 to 5 percent,” Smith said. The United States Congress made the cost of mortgage insurance tax deductible for the first time in December of 2006 for transactions closed in 2007.

Borrowers with adjusted gross incomes below $100,000 were able to deduct 100 percent of their mortgage insurance premiums paid between January 1 and December 31, 2007. The extension passed today extends this benefit through 2010. Deductions are phased out at 10 percent increments for borrowers with adjusted gross incomes between $100,000 and $109,000. PMI Mortgage Insurance Co.