Mortgage Insurance Tax Deduction Act of 2025

Bill 119 HR 918, also known as the Mortgage Insurance Deduction Permanency Act, aims to amend the Internal Revenue Code of 1986 to make the deduction for mortgage insurance premiums permanent.

Mortgage insurance is typically required for homebuyers who make a down payment of less than 20% on their home purchase. This insurance protects the lender in case the borrower defaults on the loan. Currently, homeowners are able to deduct the cost of their mortgage insurance premiums from their taxable income, but this deduction is set to expire at the end of 2021.

If passed, this bill would make the deduction for mortgage insurance premiums permanent, providing homeowners with continued financial relief. This deduction can be especially beneficial for middle and lower-income families who rely on mortgage insurance to afford homeownership. Supporters of the bill argue that making this deduction permanent would help promote homeownership and make it more affordable for a wider range of Americans. However, opponents may argue that this deduction primarily benefits higher-income individuals who can afford to buy homes with smaller down payments. Overall, Bill 119 HR 918 seeks to provide long-term financial relief for homeowners who rely on mortgage insurance, potentially making homeownership more accessible for many Americans.