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Time To Act: Mortgage Rates Likely To Rise Over Next Few Months

Time To Act: Mortgage Rates Likely To Rise Over Next Few Months

Mortgage insurance premiums are still deductible – for now

Mortgage insurance – known generally as MI or PMI – is used by large numbers of first-time buyers. For example, 775,000 first-time buyers financed with FHA mortgages in 2017. Get rid of the write-off for mortgage insurance premiums, and ownership becomes more expensive. Marginal buyers continue to rent, and home sales decline.

Even with PMI being deductible, we are already seeing a decline in first-timers entering the market. In January, the National Association of Realtors (NAR) reported that first-timers represented just 29 percent of homebuyers. That’s down from the long-term average of 39 percent.

Mortgage insurance premiums and tax deductions

What’s going on here? More than four million people finance and refinance with mortgages backed by the FHA, VA, or private mortgage insurance (PMI). Since 2007, the premiums on that coverage have been tax deductible. On average, borrowers have been able to write off about $1,500 a year.

Realtors urge Congress to support Mortgage Choice Act

NAR explained that the legislation does not create a special advantage for title insurance or other affiliates of a brokerage, saying the companies remain subject to the Real Estate Settlement Procedures Act, or RESPA, and other consumer protection laws which prevent steering, kickbacks and other unfair practices.d

“The 1.3 million members of the National Association of Realtors urge your support for this bill, as it will enhance the quality and efficiencies of the services provided by mortgage and settlement providers,” the association’s letter said, signed by NAR President Elizabeth Mendenhall.

Back in 2015, Huizenga first tried introducing the bill, H.R. 685, or also called the Mortgage Choice Act. When the bill was first introduced, most housing trade groups, including the Mortgage Bankers Association , the Mortgage Lenders Association , the Consumer Mortgage Coalition , the Credit Union National Association

Can a letter of hardship apply toward Mortgage forgiveness Act?

I am looking to move closer to my job, which I currently commute 200 miles on a daily round trip. My current property is $200k under my purchase price. I plan on trying to rent my home or I will probably attempt to short sale it.

If you chose to buy a home 200 miles to job, that's a choice you made, your election, hardship you chose. Now if you got transferred after purchasing home, then it's a hardship.