Qualified Mortgage Insurance Premium
What it is:
How it works/Example:
Let’s say John and Jane Doe buy a house. They obtain a lender requires them to obtain . The mortgage insurance essentially ensures that the lender will be repaid if John and Jane Doe default on the loan. Every month, John and Jane Doe will make the monthly principal and interest payments on the loan, and they will also make their monthly mortgage insurance premium payment.
Mortgage insurance typically comes from the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service or a private insurer.
Why it matters:
A qualified mortgage insurance premium may be tax-deductible if the income limits. The amount of insurance premiums a borrower has paid appears on Form 1098, which the lender sends to the borrower once a year. It is important to note, however, that the tax-deductibility of premiums is often in flux due to congressional action and IRS regulations, so check with a qualified tax professional regarding your situation.originated after 2006, though there are