Congress Passes Laws that Affect Home Mortgage

When Congress approved a measure it gave a big boost to the home affordability and housing industry for both first time and low to moderate income homebuyers since the cost of mortgage insurance is now fully deductible from federal taxes in 2007. This law was passed along with the omnibus tax bill which Congress approved on Saturday morning.

For homeowners who have a gross income of a hundred thousand or less they can no make all their mortgage insurance premium payments deductible on their federal taxes. This law applies to all new mortgages made starting in January 2007.

This measure was passed in the flurry of votes that Congress approved in a late closing session. It was a part of the Tax Relief and Health Care Act of 2006. The act had extensions that linked to a number of tax breaks. However, the bill is not yet in its final form since President Bush still has to sign the bill. Although it was approved by both the House and the Senate.

More people can make their dreams of owning a home a reality with private mortgage insurance since mortgages with low down payments are available. These mortgages mean that a person can buy or refinance a home with either 5 percent, 3 percent or no money down, helping to make the buying process easier.