Is PMI Tax Deductible?
With tax season just around the corner, many taxpayers are looking for any and all deductions possible to increase their refunds or minimize their payments, depending on their situation. Homeowners often benefit from being able to deduct mortgage insurance, late payments and any mortgage points paid during the year. But one question often comes up “is my private mortgage insurance (PMI) deductible?”
The answer is a resounding NO. Private mortgage insurance is not tax deductible. Many borrowers consult their tax advisors prior to borrowing or refinancing to see if paying a higher interest rate makes sense versus paying PMI. If you are considering refinancing or purchasing this year, you should consult your tax advisor on the pros and cons of PMI.
For more information about mortgage tax benefits, check out some of the links below: