Is Lender paid PMI deductible?

#2 01-10-2004, 06:24 AM

Paul <taxman[at]negia.net> wrote:
- quote -

> "Robert" <malakitoatwork[at]hotmail.com> wrote

> > I bought a new home on 4/25/2003 and financed it 80-10-10.
> > That is, I have a first mortgage for 80%, a second mortgage
> > for 10%, and put 10% down.
> > > I received some documentation from the lender (same lender
> > for 1st and 2nd) indicating that the lender was paying PMI
> > on my second mortgage and that this lender paid PMI might be
> > tax-deductible by me.

> PMI isn't tax deductible.

> > I find this hard to believe but nevertheless thought I would
> > at least ask here if anyone knows anything about whether
> > this might be true.
> > > I am of course checking with the lender as well, but the
> > lender is a monolithic company and my chances of finding the
> > right person there are slight.

> Don't ya just hate those monolithic companies?

Well, how do they compare to the newer bi-lithic or
multilithic companies?

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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#1 01-07-2004, 02:17 AM

Robert wrote:

- quote -

> I bought a new home on 4/25/2003 and financed it 80-10-10.
> That is, I have a first mortgage for 80%, a second mortgage
> for 10%, and put 10% down.
> I received some documentation from the lender (same lender
> for 1st and 2nd) indicating that the lender was paying PMI
> on my second mortgage and that this lender paid PMI might be
> tax-deductible by me.
> I find this hard to believe but nevertheless thought I would
> at least ask here if anyone knows anything about whether
> this might be true.

Your belief is justified. PMI is not deductible. However,
an interest rate increase to cover lender-paid PMI payments
IS deductible. (You technically don't know if the interest
rate increase is because the lender pays PMI, or because
you're a bad credit risk, nor does it matter.)

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01-07-2004, 01:19 AM

"Robert" <malakitoatwork[at]hotmail.com> wrote

- quote -

> I bought a new home on 4/25/2003 and financed it 80-10-10.
> That is, I have a first mortgage for 80%, a second mortgage
> for 10%, and put 10% down.
> I received some documentation from the lender (same lender
> for 1st and 2nd) indicating that the lender was paying PMI
> on my second mortgage and that this lender paid PMI might be
> tax-deductible by me.

PMI isn't tax deductible.

- quote -

> I find this hard to believe but nevertheless thought I would
> at least ask here if anyone knows anything about whether
> this might be true.
> I am of course checking with the lender as well, but the
> lender is a monolithic company and my chances of finding the
> right person there are slight.

Don't ya just hate those monolithic companies?

--
Paul A. Thomas, CPA
taxman at negia.net

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#-1 01-04-2004, 11:40 PM

I bought a new home on 4/25/2003 and financed it 80-10-10.
That is, I have a first mortgage for 80%, a second mortgage
for 10%, and put 10% down.

I received some documentation from the lender (same lender
for 1st and 2nd) indicating that the lender was paying PMI
on my second mortgage and that this lender paid PMI might be
tax-deductible by me.

I find this hard to believe but nevertheless thought I would
at least ask here if anyone knows anything about whether
this might be true.

I am of course checking with the lender as well, but the
lender is a monolithic company and my chances of finding the
right person there are slight.

Thanks,

Robert

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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