WALNUT CREEK, Calif., Dec. 11 /PRNewswire-FirstCall/ -- New congressional legislation allowing homebuyers to deduct the cost of mortgage insurance premiums on their federal income tax returns is a welcome development for homebuyers, Steve Smith, Chief Executive Officer of The PMI Group, Inc. and PMI Mortgage Insurance Co., commented today.
"We congratulate Congress for helping low- and moderate-income Americans overcome barriers to homeownership," Smith said. "By making mortgage insurance tax deductible, Congress is addressing the key issue of housing affordability for many homebuyers."
David Katkov, President and Chief Operating Officer of PMI Mortgage Insurance Co., explained, "The median home price in the United States today is about $221,000, which means a down payment of more than $40,000 if you put down the traditional 20 percent. In high cost areas such as California, where the median home price is almost $549,000, saving a 20 percent down payment is even more of a challenge. In today's climate of slowing home price appreciation, an insured loan is a simple, safe, and smart way for people to get into a home and start building equity. Being able to deduct the cost of the premiums means more savings for consumers."
Borrowers closing loans to purchase homes in 2007 who have annual household incomes of $100,000 or less will be able to deduct the full cost of their mortgage insurance premiums on their federal tax returns.
PMI Mortgage Insurance Co.
Cautionary Statement
Statements in this news release that are not historical facts or that relate to future plans, events or performance are "forward-looking" statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause PMI's actual results to differ materially from those expressed or implied in this release. Risks and uncertainties related to PMI's business are discussed in PMI's SEC filings, including its Form 10-K for the year ended December 31, 2005 and Form 10-Q for the quarter ended September 30, 2006. We undertake no obligation to update forward-looking statements.
PMI Mortgage Insurance Co.
