The White House wants to extend the tax deductibility of mortgage insurance payments by consumers.
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According to budget documents released early Monday, MI premiums will continue to have a favorable treatment under the IRS code, but will be phased out over time for high income earners. Also, the tax language only applies to policies written January 1, 2007 and after.
The new budget document says nothing about the overall mortgage interest deduction. It was anticipated that the White House would cap the MID at $500,000 worth of mortgage debt, down from the current maximum of $1 million.
