Traditional Mortgage Solution Now Even More Affordable
RALEIGH, N.C., Dec. 9 /PRNewswire/ -- Home affordability and the
housing industry received a big boost today from Congress, which approved a
measure that would for the first time allow lower- and moderate-income
homebuyers to deduct the full cost of mortgage insurance from their federal
taxes in 2007. The provision was included in the omnibus tax bill approved
by Congress early Sunday morning.
"Many homeowners who used adjustable and exotic loans to buy houses
during the housing boom of the last few years are now feeling the pinch as
their interest rates reset," said Kevin Schneider, president of the U.S.
mortgage insurance business for Genworth Financial, Inc. (NYSE: GNW). "This
new legislation gives homebuyers the option of choosing a low down payment
mortgage that offers both tax deductibility and fixed monthly payments.
This is an important step forward for U.S. housing."
The legislation passed today makes all mortgage insurance premium
payments deductible for homeowners with adjusted gross household incomes of
$100,000 or less. It applies to all new mortgage originations beginning
January 1, 2007.
"This tax relief will aid nearly one million Americans looking to buy a
home with an affordable mortgage in the coming year," Schneider said. "In
today's volatile housing market, a 30-year fixed rate mortgage with
mortgage insurance is a more secure option for homebuyers, and it can cost
less each month than a combination of two loans."
Private mortgage insurance enables people to realize their dreams of
homeownership sooner by making mortgages with low down payments possible.
With it, homebuyers can purchase or refinance a house with as little as
five percent, three percent or even no money down. Mortgage insurance
generally is cancelable after the owner's equity in the home reaches 20
percent.
About Genworth Financial
Genworth is a leading insurance holding company, serving the lifestyle
protection, retirement income, investment and mortgage insurance needs of
more than 15 million customers, and has operations in 24 countries. For
more information, visit http://www.genworth.com.
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