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"Too many people have gambled with the one thing they shouldn't risk-their homes," said Kevin Schneider, president of Genworth Financial's U.S. mortgage insurance business. "Insured loans are one of the most affordable and safest ways to buy a home, and this new tax break makes it an even better deal."
Mortgage insurance helps buyers who can't make a 20 percent down payment become homeowners sooner. While piggyback mortgages do the same by combining two mortgage loans, the second loan usually carries a higher and potentially adjustable interest rate. Mortgage insurance allows buyers to remain secure in the knowledge that their monthly payment will not change.
Mortgage insurance premiums are fully tax deductible for households with an adjusted gross income of $100,000, phasing out as the income rises to $109,000.
According to mortgage expert Holden Lewis at Bankrate.com, the "bottom line
for consumers is, don't get a piggyback loan without taking a serious look at
mortgage insurance, because mortgage insurance is likely to be cheaper in the
long run, and it might even cost less in the short run." To learn more, visit
www.smartermi.com.
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