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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | September 13, 2023 10:38 AM |
|---|---|
| From: | Representative Thomas H. Kutz |
| To: | All House members |
| Subject: | Private Mortgage Insurance Tax Deduction |
| Dear Colleagues: In the past three years, the cost to own a home has more than doubled. With higher home prices and interest rates soaring, Pennsylvanians are struggling to achieve the American Dream of owning their own home. Private Mortgage Insurance (PMI) often adds significant costs to mortgage payments for families early in home ownership. In the near future I plan on introducing legislation to offer home owners a tax deduction to off set PMI on their mortgages. PMI is a fee tacked on to most mortgages until the purchaser hits an arbitrary equity threshold, usually around 20% of the value of the house. This money does not help pay down the mortgage and simply goes to the bank to cover any potential losses on the property. I am proposing that the state offer a tax deduction of up to $3,600 each year to off set the burden of PMI. This is similar to a program offered by the federal government which allowed homeowners to claim their PMI on their federal taxes. Please join me in sponsoring this important legislation that will help home buyers across the state. |
Introduced as HB2008