’tis the season for tax breaks

The U.S. Congress just approved the Omnibus Tax Bill that is full of tax breaks. According to USA Today, anyone purchasing a home after Dec. 31st can deduct mortgage insurance premiums in 2007. What is mortgage insurance? When home buyers have less than a 20% down payment, have to pay insurance to protect lenders in case of default. It typically costs about a half of a percent (one-half of 1%) of the mortgage or approximately $75 a month for a $180,000 loan.