New mortgage-related tax breaks for 2007

In a year of bad mortgage news, there’s a bright spot or two for homeowners: Foreclosure comes with a tax break, and 2007 mortgage insurance payments may be tax-deductible.

Congress acted on both provisions late last year, extending the mortgage insurance deduction for three more years and creating a new tax break for homeowners facing foreclosure.

The mortgage insurance deduction will help certain low and moderate income homeowners, especially first-time homebuyers and those struggling with higher house payments as adjustable rate mortgages reset.

Read the entire article written By EILEEN PUTMAN at www.businessweek.com