Legislation Would Permanently Extend a Currently Expired Tax Deduction for Mortgage Insurance Used by Middle-Class Homebuyers
WASHINGTON – U.S. Senators Maggie Hassan (D-NH) and Roy Blunt (R-MO) introduced bipartisan legislation to expand tax relief to middle-class homeowners. Their bill will permanently extend a currently expired tax deduction for middle-class homebuyers with mortgage insurance. It would also increase the income level for families who can qualify for this tax deduction to better ensure that more middle-class homeowners can access this tax relief.
"All Americans deserve a place to call home, yet homeownership has become increasingly difficult for many middle-class families," said Senator Hassan. "This commonsense, bipartisan bill would help more Granite State families get the tax relief that they need during the homeownership process and help pave the way for a stronger middle class."
“Homeownership is an important building block for hardworking Americans to strengthen their financial footing and secure their family’s future,” said Senator Blunt. “The mortgage insurance tax deduction has a demonstrated track record of helping more people afford a home and this bill would help ensure it continues to benefit the families who need it most.”
Most homebuyers who can’t make a 20 percent down payment are required to buy mortgage insurance. Since 2007, homeowners could deduct premiums paid on mortgage insurance. In 2019, middle-class homebuyers got an average mortgage insurance deduction of $2,000 according to IRS data, but this tax relief expired in 2021.
The bipartisan Middle Class Mortgage Insurance Premium Act would 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 U.S. Mortgage Insurers, about 9,500 New Hampshire homebuyers used mortgage insurance in 2020, and about 60% of those were first-time homebuyers.
To read the bill text, click here.