Help getting rid of MIP (not PMI) (1 Viewer)

[Scott Tucker]

99.9999% of the cases. I would have to consult a tax auditor to know when mortgage interest wasn't tax deductable.

 

[Jason L.]

Mortgage Interest - Tax Deductible

Mortgage Points - Tax Deductible

Mortgage Insurance [PMI, MIP] - NOT Tax Deductible

 

[Tim Abbott]

FYI...there is a bill that is stuck in either the House or Senate (can't remember which right now) in which one of the provisions is to make PMI tax-deductible. It may take another year or so, but it should be here eventually.

 

[Eric Kahn]

What is MIP and why is it so high?
my PMI is only 16 dollars a month
I had a 5% down loan

 

[Patrick Sun]

It's a slightly different ballgame with FHA loans that require very small down payments (3%), thus the MIP is the cost of putting down so little for down payment on a house.

 

[Sean Trask]

Hi all,

I have a PMI question - and if I should start a new thread, let me know.

Is it *always* better to do an 80/15/5 - or x/y/z type mortgage to avoid PMI?

I understand that PMI is not tax deductible, but I also understand that you don't get 100% of your interest back either.

My gut feeling is the 80/15 is the way to go (as opposed to 95/5 and pay PMI).

Is there a site where I can work the numbers? I can't seem to find one.

Thanks a lot,
Sean

 

[nolesrule]

It really depends on the difference in the interest rate of the second mortgage vs. the interest rate of the first mortgage as compared to the PMI rate.

Tax deductibity is really a function of how much house you buy and what the interest rate is. Our interest rate was low enough on the house we bought in 2003 that we don't exceed the standard deduction.