How Does Mortgage Insurance Deduction Work?
What is mortgage insurance and how does it work? Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get. Typically, borrowers making a down payment of less than 20 percent of the purchase price of the home will need to pay for mortgage insurance.
Can you deduct mortgage insurance premiums for veterans?
Qualified Premiums. You can deduct mortgage insurance premiums only if they qualify. Qualified premiums are provided by certain government agencies, such as the Federal Housing Administration and Department of Veteran’s Affairs, and eligible private mortgage insurance companies.
