The Mortgage Insurance Tax Deduction Act of 2025: Explained

Overview: Mortgage Insurance Tax Deduction Act of 2025

The Mortgage Insurance Tax Deduction Act of 2025 would make the mortgage insurance premium tax deduction permanent. This includes common types of mortgage insurance, such as private mortgage insurance on Conventional loans and mortgage insurance premiums on Federal Housing Administration loans.

By making the deduction permanent, the bill aims to bring consistency to the way mortgage insurance premiums are treated at tax time. That consistency can matter when you use mortgage insurance as a stepping stone to homeownership with a smaller down payment.

The bill applies to mortgage insurance amounts paid or accrued after December 31, 2024. Note that bills often change on their way to becoming law, so this page will update as new details emerge. For real-time updates, subscribe to our newsletter.

What Is the Mortgage Insurance Tax Deduction Act of 2025?

Mortgage insurance is a monthly or upfront cost that can come with a home loan when you make a smaller down payment. The Mortgage Insurance Tax Deduction Act of 2025 focuses on how those mortgage insurance premiums are handled on your federal tax return.

The bill would make the mortgage insurance premium tax deduction permanent. In simple terms, it keeps the option available to deduct eligible mortgage insurance premiums, rather than having the deduction expire and require future renewals.

The bill applies to mortgage insurance amounts paid or accrued after December 31, 2024, which is the timing rule that determines when the permanent treatment would begin.

How The Mortgage Insurance Tax Deduction Act of 2025 Works

The Mortgage Insurance Tax Deduction Act of 2025 is a tax policy change. It does not change how mortgages are approved, and it does not change when mortgage insurance is required.

Here is what the bill does based on the text summary:

• Makes the mortgage insurance premium tax deduction permanent
• Applies to eligible mortgage insurance amounts paid or accrued after December 31, 2024

If the bill becomes law, the main change you would notice is predictability. When you pay mortgage insurance, the tax treatment would be set as an ongoing rule instead of a temporary provision.

Who May Benefit From the Mortgage Insurance Tax Deduction Act of 2025?

The Mortgage Insurance Tax Deduction Act of 2025 may be most helpful when mortgage insurance is part of your path to buying or keeping your home.

Groups that may benefit include:

• Home buyers using private mortgage insurance to buy with a smaller down payment
• Home buyers using Federal Housing Administration financing with mortgage insurance premiums
• Homeowners who continue to pay mortgage insurance and want consistent tax treatment year after year

This bill is about the tax deduction for mortgage insurance premiums, so the benefit depends on whether you pay mortgage insurance and whether you qualify to claim the deduction under federal tax rules.

Who Sponsors the Mortgage Insurance Tax Deduction Act of 2025?

The Mortgage Insurance Tax Deduction Act of 2025 is introduced in the House as H.R. 918. Sponsor and cosponsor information can change as the bill moves through Congress and gains support.

For the latest legislative updates and cosponsors, see the Bill Tracker above.