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HR 2760119th CongressIn Committee

Middle Class Mortgage Insurance Premium Act of 2025

Introduced: Apr 9, 2025
View on Congress.gov
Standard Summary
Comprehensive overview in 1-2 paragraphs

H.R. 2760, the Middle Class Mortgage Insurance Premium Act of 2025, would permanently preserve the mortgage insurance premium (MIP) deduction and lift the income cap that determines who can claim it. Specifically, it raises the adjusted gross income (AGI) limits for the deduction—doubling them for joint filers from $100,000 to $200,000 and from $50,000 to $100,000 for married filing separately—and removes an existing constraint (clause (iv)). The bill codifies the deduction as permanent, rather than temporary, and it would apply to taxable years beginning after December 31, 2025 (i.e., starting in 2026). The change is designed to ease the tax burden for middle-class homeowners who pay private mortgage insurance (PMI) or other mortgage insurance premiums as part of their home financing.

Key Points

  • 1Increases the AGI cap for the mortgage insurance premium deduction from $100,000 to $200,000 for joint filers and from $50,000 to $100,000 for those married filing separately (modifying 163(h)(3)(E)(ii)).
  • 2Repeals clause (iv) of the same provision, removing a specific restriction tied to the deduction.
  • 3Makes the mortgage insurance premium deduction permanent, removing any sunset or expiration risk.
  • 4Applies to taxable years beginning after December 31, 2025 (effective for 2026 and later).
  • 5The bill is titled the “Middle Class Mortgage Insurance Premium Act of 2025” and was introduced in the House (with multiple sponsors, including Rep. Buchanan and several co-sponsors).

Impact Areas

Primary group/area affected: Middle-class homeowners who pay mortgage insurance premiums and itemize deductions on their federal tax returns. The higher AGI cap allows more taxpayers to claim the deduction.Secondary group/area affected: Mortgage lenders and private mortgage insurers (PMI providers), as greater demand for mortgage insurance and favorable tax treatment could influence loan structures and product uptake.Additional impacts:- Tax policy/ Revenue: Since more taxpayers would be able to deduct MI premiums, federal tax revenue could be modestly reduced relative to current law, depending on behavioral responses and the distribution of MI premium payments.- Tax planning: Taxpayers who itemize and have qualifying mortgage insurance premiums would need to revisit eligibility under the new, higher AGI thresholds starting with 2026 returns.- Housing affordability signals: By reducing the after-tax cost of PMI for qualifying households, the bill could indirectly affect homeownership decisions, particularly for borrowers with high loan-to-value ratios.
Generated by gpt-5-nano on Nov 19, 2025