This falls into the “Good to Know” category of life: Mortgage Insurance Premiums are Tax Deductible Through 2013
If you bought a home or vacation home and didn’t put 20% of the purchase price down as down payment, the odds are good that you are paying mortgage insurance (MI). It may have been financed as an up-front premium or may be paid monthly. Until recently, MI premiums were not tax deductible.
As part of the American Taxpayer Relief Act of 2012, borrower-paid MI premiums are now tax-deductible through the year 2013. This applies to when the money that is borrowed is to buy, build or substantially improve a residence, provided the funds are secured by the same residence.
Homeowners can deduct mortgage insurance premiums paid on their primary residence and one other qualified residence (non-rental second homes) just as they do with mortgage interest.
For more information on income qualifications and allowable deductions, check out MGIC’s MI basics: tax-deductible MI
(Please consult a tax advisor to when determining eligibility of this, or any tax deduction.)
Thank you to Holly Smith, Pacific Residential Mortgage for bringing this to my attention.