Tax Deductions for 2007

Private mortgage insurance is usually required by lenders for borrowers who contribute less than 20% of a home’s purchase price as a down payment. The insurance, protecting the lender, is quite expensive, but in some cases it’s the only way a home buyer can finance the purchase.
Beginning January 2007, many home buyers who must purchase private mortgage insurance to obtain needed financing will finally be getting a break.
Premium payments for such insurance will be tax deductible for borrowers who earn less than $100,000 a year. This tax break will probably save borrowers from $300- $350. So don’t spend it all in one place.