Legislation Restores and Expands Mortgage Insurance Tax Deduction; About 20,000 NH Homebuyers Used Mortgage Insurance in 2020
WASHINGTON – U.S. Senators Maggie Hassan (D-NH) and Thom Tillis (R-NC) reintroduced a bipartisan bill that would cut taxes for middle-class homeowners by restoring and permanently extending an expired tax deduction for middle-class homebuyers with mortgage insurance, as well as expanding the number of families who can qualify for the tax deduction.
“Homeownership is increasingly out of reach for many families in the Granite State and across the country. This bipartisan bill would cut taxes for middle-class families, helping them to buy a house and afford their mortgage. I will continue working to address the housing crisis in New Hampshire,” said Senator Hassan.
“With housing prices at record highs and rising interest rates to combat inflation, homeownership has become more unaffordable than ever,” said Senator Tillis. “I am proud to co-sponsor this bill to provide tax relief for middle-class families so more Americans have an opportunity to own a home.”
Most homebuyers who can’t make a 20 percent down payment are required to buy mortgage insurance. Between 2007 and 2021, homeowners could take a tax deduction for premiums paid on mortgage insurance. In 2020, middle-class homebuyers got an average mortgage insurance deduction of $2,100 according to IRS data, but this tax cut expired in 2021.
The bipartisan Middle Class Mortgage Insurance Premium Act would restore and permanently extend the mortgage insurance tax deduction and expand the deduction to more taxpayers by increasing the income limit from $100,000 to $200,000 per family. According to the Urban Institute, about 20,000 New Hampshire homebuyers used mortgage insurance in 2020.
To read the bill text, click here.