Washington, D.C. – December 20th, 2007 – A new law authored by Oregon Senator Gordon Smith will allow homeownership to be more affordable for 187,000 Oregon families. The Mortgage Insurance Fairness Act guarantees mortgage insurance will remains tax-deductible for the vast majority of American homeowners through 2010. The President signed the bill into law today.
“Homeownership is the cornerstone of the American dream,” Smith said. “This bill breaks down a significant barrier to owning a home and helps make that dream a reality.”
Mortgage insurance, whether provided through the Veterans Administration, Fair Housing Act, Rural Housing Service or private companies is paid by most home buyers when a down payment of less than 20 percent is made. Mortgage insurance often costs Oregonians over $1000 annually.
Senator Smith’s legislation, originally enacted in 2006, makes mortgage insurance deductible for those whose incomes do not exceed $106,000 per year – making approximately 90 percent of Oregonians eligible. Over 12 million American homeowners benefited from this deduction in the first year alone.