Archive for the ‘Money’ Category
It can mean more sales. It will most certainly mean more refinances at higher LTV’s. If you are a real estate agent you can use this as a tool for people who were hesitant to get into that dream home (because of PMI) to do so and enjoy this deduction and they can choose ONE LOAN and not a PIGGY BACK – although your mortgage professional should be the one to demonstrate the numbers for the CLIENT to make the choice. Generally speaking piggy backs have a higher blended interest rate than a single higher LTV loan but people choose them to avoid PMI. But if PMI is tax deductible that cures the need for a piggy back.
Here is something to keep in mind: The current version HR5970 only allows for the deduction on NEW LOANS and evidently terminates on 12/31/2007. In other words the deduction apparently is good for only ONE YEAR. Read the rest of this entry »
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