Buying a home is a big step, and every dollar saved makes a difference. That's why we're excited to share some good news: mortgage insurance (MI) premiums will now be permanently tax-deductible again.

This update takes effect with the 2026 tax return (filed in 2027), giving buyers and homeowners time to prepare and plan.

Why This Matters

For many first-time homebuyers, MI makes homeownership possible by reducing the upfront cash needed for a down payment. Instead of saving the traditional 20%, buyers can purchase a home with as little as 3–5% down, with MI protecting the lender. Now that these premiums are tax-deductible, the long-term cost of owning a home has become more affordable.

Here's a Closer Look at How It Works

• Household income under $100,000: You can deduct 100% of your MI premiums each year.
• Income up to $110,000: You may still qualify for a partial deduction.
• Average past savings: Homeowners have saved more than $1,400 annually when this deduction was previously in place.

The Bigger Picture

If you're buying a home soon, this change could help offset monthly costs and make it easier to find a payment that fits comfortably in your budget. If you own a home with MI, this deduction could put real money back in your pocket each year.

What's Next?

Everyone's financial situation is different, and while MI tax deductibility is a valuable benefit, the best strategy for you may depend on factors like income, loan type, and long-term plans.

The Sharpe Mortgage Team is here to help you understand your options and guide you through how this update may apply to your home financing.

Have questions about how this could benefit you? Call the Sharpe Team at 336-575-9448. We're happy to walk you through the details.