U.S. Reps. Ron Kind (D-WI) and Vern Buchanan (R-FL) recently introduced the Middle Class Mortgage Insurance Premium Act of 2021, which seeks to expand mortgage insurance premium payment eligibility and address permanent deductions for middle-class homebuyers.
“Making this deduction on mortgage insurance premium payments permanent and giving hard-working Wisconsin families some breathing room is long overdue,” Kind said. “I’m proud to introduce this bipartisan legislation to make sure we stop kicking the can down the road on this important deduction.”
The legislators maintain the deduction has aided millions of middle-class families nationwide with efforts to purchase homes, and making the provision permanent would provide needed relief.
“At a time when many Americans are still struggling to recover economically, this legislation will provide much-needed relief to millions of low-and middle-income families in Florida and across the country looking to purchase a home,” Buchanan said. “I look forward to working with Rep. Kind to make this important tax break permanent and ensuring that the goal of homeownership is still attainable for working-class families.”
Congress enacted the law 15 years ago, enabling a deduction for mortgage insurance premium payments, but it currently remains temporary.
“Making permanent the ability of homeowners to deduct mortgage insurance premiums from federal income taxes and doing so in a way that makes this important tax deduction available to more hard-working middle-class families, is smart public policy that benefits potentially millions of existing homeowners,” U.S. Mortgage Insurers said. “Low down payment mortgages have proven critical for millions of low- and moderate-income, first-time, and minority borrowers to buy a home sooner, secure financial stability, and build intergenerational wealth.”