A break for homeowners
Count on Uncle Sam to continue supporting the American Dream of homeownership, depending on how you pay for it.
In 2007, Congress approved a tax deduction targeted at first-time homebuyers and middle-income taxpayers who put less than 20% down on their loans. Because of the smaller down payment, borrowers are required by law to buy mortgage insurance to protect lenders from defaulting loans. While insurance raises the costs of monthly mortgage payments, homeowners can deduct the expense, saving taxpayers an average of $350 to $400 annually, according to the Mortgage Insurance Companies of America, a Washington DC-based trade group.
Congress has voted to extend the tax through end of 2011. After that, it's anyone's guess if lawmakers will decide to extend the break.
NEXT: A break for parents with kids in college
Last updated March 10 2011: 12:45 PM ET
