Traditional Mortgage Solution Now Even More Affordable
RALEIGH, N.C., Dec. 9 /PRNewswire/ -- Home affordability and the housing
industry received a big boost today from Congress, which approved a measure
that would for the first time allow lower- and moderate-income homebuyers to
deduct the full cost of mortgage insurance from their federal taxes in 2007.
The provision was included in the omnibus tax bill approved by Congress early
Saturday morning.
"Many homeowners who used adjustable and exotic loans to buy houses during
the housing boom of the last few years are now feeling the pinch as their
interest rates reset," said Kevin Schneider, president of the U.S. mortgage
insurance business for Genworth Financial, Inc. (NYSE: GNW). "This new
legislation gives homebuyers the option of choosing a low down payment
mortgage that offers both tax deductibility and fixed monthly payments. This
is an important step forward for U.S. housing."
The legislation passed today makes all mortgage insurance premium payments
deductible for homeowners with adjusted gross household incomes of $100,000 or
less. It applies to all new mortgage originations beginning January 1, 2007.
"This tax relief will aid nearly one million Americans looking to buy a
home with an affordable mortgage in the coming year," Schneider said. "In
today's volatile housing market, a 30-year fixed rate mortgage with mortgage
insurance is a more secure option for homebuyers, and it can cost less each
month than a combination of two loans."
Private mortgage insurance enables people to realize their dreams of
homeownership sooner by making mortgages with low down payments possible. With
it, homebuyers can purchase or refinance a house with as little as five
percent, three percent or even no money down. Mortgage insurance generally is
cancelable after the owner's equity in the home reaches 20 percent.
About Genworth Financial
Genworth is a leading insurance holding company, serving the lifestyle
protection, retirement income, investment and mortgage insurance needs of more
than 15 million customers, and has operations in 24 countries. For more
information, visit http://www.genworth.com.
SOURCE Genworth Financial, Inc.
CONTACT: Investors: Alicia Charity, +1-804-662-2248,
Alicia.Charity@genworth.com, or
Media: Philip Moeller, +1-804-662-2534,
Philip.Moeller@genworth.com,
both of Genworth Financial
