Mortgage Insurance Tax Deduction Act of 2025

# Mortgage Insurance Tax Deduction Act of 2025 - Summary **What the bill does:** This bill would allow homeowners to deduct mortgage insurance premiums from their federal income taxes on a permanent basis. Currently, this tax break expired at the end of 2021, so homeowners can no longer claim it. The bill would restore this deduction for people who pay for mortgage insurance (insurance that protects lenders if a borrower defaults on their loan). **Who it affects:** The bill primarily benefits homeowners who are required to carry mortgage insurance—typically first-time buyers, people with smaller down payments, or those with lower credit scores.

These homeowners could reduce their taxable income by the amount they pay in insurance premiums, potentially lowering their tax bills. The deduction would apply to mortgages insured by government agencies (VA, FHA, USDA) and certain private insurers. **Current status:** The bill was introduced in the House by Representative Julia Brownley (D-California) and is currently under review in committee. It has not yet been voted on by the full House or Senate.