Homeowners who are eligible to deduct the PMI premiums paid on a mortgage can shave hundreds of dollars off their income tax bills.

If you put down less than 20% on a house, expect to be required to purchase private mortgage insurance, which protects the lender in the event you default on the home loan. That’s a good deal for the lender, considering you’re the one paying the PMI premiums.

But PMI is also a good deal for aspiring homeowners. Many people, especially first-time buyers, can’t come up with big downpayments. PMI encourages lenders to give them mortgages anyway.

Don’t pay PMI a day longer than you must, however. Canceling the insurance as soon as you’re entitled can save you thousands of dollars. For eligible homeowners, deducting the premiums come tax time can save hundreds more.

Getting the PMI tax deduction

Starting with loans issued or refinanced in 2007, and continuing through 2010, you can deduct each year’s premiums paid on PMI for your principal residence and for a non-rental second home. The tax break was originally good for 2007 only, but the government extended it for three years. Unless it’s extended again, you won’t be able to take the deduction beyond 2010.

The deduction begins to phase out once your adjusted gross income reaches $100,000 ($50,000 for married filing separately) and disappears entirely at an AGI of $109,000 ($54,500 for married filing separately). In general, you can only deduct the premiums paid for the current tax year. If you pre-paid premiums for future years, that portion must be allocated to those future years. Rules can vary for mortgage insurance provided by the Federal Housing Administration, Department of Veterans Affairs, and Rural Housing Service, so consult a tax adviser.

To claim the PMI deduction, you must itemize you return. Enter qualified PMI premiums on Line 13 of Schedule A. The IRS instructions for Schedule A include a worksheet for homeowners subject to the income phase-out. Basically, you’ll lose 10% of the deduction for each $1,000 over the $100,000 AGI limit you are.

How much can you save?

According to the Mortgage Insurance Companies of America, an industry trade group, PMI premiums on a median priced home ($198,100 in 2008) run between $50 and $100 per month. Justine DeVito Tenney, a CPA and financial planner with Weiser LLP in Lake Success, N.Y., says a good rule of thumb is $50 a month for every $100,000 of financing. The amount of the downpayment, type of loan, and lender requirements can all affect the actual cost.

United Guaranty, a PMI provider, offers an online calculator that estimates premiums based on various assumptions. Put 5% down on a $200,000 house, for example, and you’ll pay monthly PMI premiums of about $150. Increase your downpayment to 10%, and you’ll pay less than $100 a month.

How does all of this affect your tax bill? Let’s say a married couple filing jointly with an AGI of $100,000 bought a house on Jan. 1, 2009, for $200,000. They put down 5%. By the end of 2009 they paid $1,800 in PMI premiums ($150 times 12 months). By reducing their $100,000 AGI by $1,800, they lower their tax liability by $438.

Automatic cancellation of PMI

While the tax deduction is nice, at least while it lasts, getting rid of PMI altogether is even nicer. The Mortgage Insurance Companies of America estimates that 90% of homeowners are done paying PMI premiums within five years of buying their homes.

If you bought your home after 1999 and are still paying PMI, you probably fall under the Homeowners Protection Act (HPA) of 1998. Your lender is required to automatically cancel your insurance once you’ve paid down your mortgage to a 78% (0.78) loan-to-value ratio, or LTV. Put another way, once you have 22% equity. Many lenders will treat pre-HPA loans in a similar fashion. Call to confirm.

To figure your LTV, divide the outstanding loan amount by the original price of your home. If you have a $190,000 mortgage on a house you purchased for $200,000, the LTV is 95%. You’d need to get the mortgage balance down to $156,000—78% of the original value—to qualify for automatic cancellation of PMI.

Requests for cancellation

You don’t have to wait for automatic cancellation. When your LTV hits 80%, you can petition your lender to end PMI. The process can take several weeks. Your lender isn’t required to oblige your request, but you’ll bolster your case if you have a good payment history.

Start by calling your lender, not the PMI provider. You’ll probably need to make a formal request in writing and pay out of pocket for an appraisal. While it’s conducted primarily for the benefit of the lender to confirm that your property hasn’t declined from its original value, a high appraisal can work to your advantage. As your property value increases, whether due to a general uptick in real estate prices or specific home improvements, your LTV decreases.

Tenney, the New York CPA, points out that even if you don’t meet the 78% or 80% milestones, you can get PMI canceled when you hit the mortgage midpoint. On a 30-year fixed-rate mortgage, that would occur after 15 years of payments. This can come into play for certain high-risk loans that call for a longer PMI period.

Piggyback loans dodge PMI

Looking for a PMI loophole? Try so-called piggyback loans, also known as 80/10/10 or 80/15/5 loans. Basically, the home lender finances 80% and immediately gives you a second loan for another 10% to 15%. You put down 5% to 10%. No PMI is required.

This alternative has traditionally been available for homebuyers with minimal capital but excellent credit. In tight lending environments, however, this arrangement is harder to come by. And even when piggyback loans are available, the extra interest you usually pay on the second mortgage may actually cost more than PMI premiums.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Richard J. Koreto is a freelance writer. He has been editor of several professional financial magazines and is the author of “Run It Like a Business,” a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y

Source: http://www.houselogic.com/articles/deduct-private-mortgage-insurance/

EVANSVILLE - Many people are opening their hearts and wallets to help those in need in Haiti, but the FBI wants everyone to be careful who they give their money to.  Officials said past tragedies and natural disasters have prompted scams.

The FBI provided this list of things to look for before making a donation:

• Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages.

• Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites.

• Verify the legitimacy of nonprofit organizations by utilizing various Internet-based resources that may assist in confirming the group's existence and its nonprofit status rather than following a purported link to the site.

• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.

• Make contributions directly to known organizations rather than relying on others to make the
donation on your behalf to ensure contributions are received and used for intended purposes.

• Do not give your personal or financial information to anyone who solicits contributions: Providing such information may compromise your identity and make you vulnerable to identity theft.

Officials ask that anyone who gets such an e-mail or may have been a victim of this kind of scam to notify the Internet Crime Compliant Center at www.ic3.gov.

The IC3 is a joint effort between the FBI, the National White Collar Crime Center and the Bureau of Justice Assistance to report and alert authorities of online scams.

Source: http://www.news25.us/Global/story.asp?S=11821982

• 30-year fixed-rate mortgages decreased to 5.13 percent from 5.18 percent.
• 15-year fixed-rate mortgages decreased to 4.45 percent from 4.62 percent.
• 1-year ARMs increased to 6.83 percent from 6.42 percent.

Ligonier-based Emergency Radio Service Inc. (ERS) has made an acquisition in the Evansville market. It has acquired Tri-State Communications Inc., which has been in southern Indiana since 1957. ERS already has more than 130 workers in offices throughout the state including Fort Wayne, South Bend and Indianapolis.

Evansville, Indiana—January 12, 2010— Emergency Radio Service, Inc. (ERS), of Ligonier, Indiana announced today the acquisition of TSC, Inc., dba Tri-State Communications, of Evansville, Indiana. Tri-State Communications has been an Authorized Motorola Dealer since 1957, and serving the Southwest Indiana region.

“We are very happy to have Tri-State Communications as a part of the ERS family and look forward to the opportunity to work with their team and their many years of experience in the territory.” says Brian Hull VP/GM of ERS, “We are eager to put our combined knowledge and resources to work in Southern Indiana and build on what we have accomplished over the past 62 years.”

ERS has a wide offering of wireless solutions and a dedication to emerging technologies. ERS provides the full line of Motorola two-way radios, wireless networking systems, wireless video surveillance, and emergency communications solutions. ERS has expertise in technologies such as Mesh, point-to-point and point-to-multipoint broadband, and leads the way in indoor WLAN, WWAN, VoWLAN and mobile computing solutions.

ERS is an Authorized Motorola Two-Way Radio Dealer, Motorola Manufacturer Representative, Premier Service Partner, and a Motorola Authorized Channel Partner for Wireless Broadband and Enterprise Mobility.

TSC, Inc has been in business for over 50 years providing high quality two-way radio communications systems to the Government, Public Safety, Commercial and Enterprise customers with offices located in Evansville and Huntingburg, Indiana.

Emergency Radio Service, Inc has been a family owned business since 1948 with a dedicated staff of over 130 members in offices and Service Centers located in Elkhart, Evansville, Fort Wayne, Indianapolis, Kokomo, Ligonier, Muncie and South Bend, Indiana. ERS has developed their business with the promise to provide Exceptional Customer Service, earn Customer Loyalty, conduct business in an Honest and Ethical manner with Knowledgeable Employees to provide High Quality Products and Outstanding Field Service at Fair Competitive Prices.

Source: Emergency Radio Service Inc. & Inside INdiana Business http://www.insideindianabusiness.com/newsitem.asp?ID=39572

Mesker Park Zoo & Botanic Garden in Evansville reports 2009 was a record year for attendance and revenue. More than 202,000 people visited the zoo, compared to nearly 181,000 in 2008. Revenue was $1.4 million, up from $1.2 million the previous year.

(EVANSVILLE, IN)-2009 shattered attendance and revenue records set in 2008 at Mesker Park Zoo & Botanic Garden. Attendance in 2009 was 202,224, a 12% increase over 2008 (180,857). Revenue in 2009 was $1,456,627 which was 20.7% higher than in 2008 ($1,206,645).

“It is rewarding to see how much interest the Zoo is attracting. We had high hopes for AMAZONIA when it opened in 2008 and it has certainly lived up to those expectations,” said Mayor Jonathan Weinzapfel. “It is especially gratifying to have such a good year when other state attractions did not fare as well.”

Zoo staff set a goal of breaking 200,000 visitors in 2009. They were aided in that effort by a free admission day on December 26th which was underwritten by Toyota. 3,766 people took advantage of the free admission; it also brought out some visitors who hadn’t been to the Zoo in years.

“In addition to the idea of doing a free day to reach our mark, the day represented a good marketing tool for individuals who would not visit the Zoo otherwise and we look forward to them coming back to visit this summer when the zoo and botanical areas are in full splendor,” said Amos Morris, Zoo Director

The opening of AMAZONIA, Forest of Riches helped boost numbers and revenue in 2008. The Zoo also began operating its own gift shop. Attendance in 2009 was increased again by the popularity of AMAZONIA, which now has its own new attraction – 2 new female jaguar cubs named Zimba and Maya. In 2009, the Zoo also welcomed a new Indian rhino, Mechi, and unveiled the newly renovated nocturnal exhibit in the Kley Building.

Mesker Park Zoo & Botanic Garden is open 365 days a year from 9:00 a.m. to 5:00 p.m.; the entry gate closes at 4:00 p.m. Reduced winter admission rates for adults are $6.50 and children ages 3 -12- are $5.50. Children under three are free. In recognition of their support, Vanderburgh county residents receive a $1 discount. Please visit www.meskerparkzoo.com for more information regarding yearly memberships or other zoo services.

Source: Mesker Park Zoo & Botanic Garden & Inside INdiana Business http://www.insideindianabusiness.com/newsitem.asp?ID=39559

An approval in the Indiana House Monday means voters in Indiana will likely have a say on whether property tax caps should go into the constitution.

The General Assembly is considering a constitutional amendment that would cap residential property tax rates at 1% of the home's value, agriculture at 2%, and business property at 3%.
The House passed the amendment 75-to-23.

From southwestern Indiana Democrats Dennis Avery, Trent Van Haaften, Kreg Battles, and Russ Stilwell voted against it.

Democrat Gail Riecken joined Republicans Mark Messmer and Suzanne Crouch in voting "yes."
If the Senate passes the resolution, which is expected, the issue will be on the November ballot.

Source: http://tristatehomepage.com/content/fulltext/?cid=122922

Top-Rated Bank in Indiana and Kentucky

EVANSVILLE, Ind., Jan. 11, 2010 (GLOBE NEWSWIRE) -- Old National Bancorp (NYSE:ONB) is the 18th best performing bank in the nation and the highest rated bank in Indiana and Kentucky, according to a comprehensive Forbes Magazine ranking of the nation's 100 largest banks. The list was published December 30, 2009, in a Forbes.com article titled "America's Best and Worst Banks." Forbes.com is the online arm of Forbes Magazine.

"This is a tremendous validation of Old National's strength and stability from one of the world's foremost business and financial publications," said Bob Jones. "We are honored by this prestigious recognition and the dedication to exceptional client service that it represents."

In order to measure the health and stability of the nation's largest financial institutions on the list, Forbes turned to SNL Financial, a renowned Charlottesville, Va.-based financial research firm. SNL examined eight key financial measures:

 * Return on average equity
 * Net interest margin
 * Non-performing loans as a percentage of loans
 * Non-performing assets as percentage of assets
 * Reserves as a percentage of NPLs
 * Two capital ratios (Tier 1 and risk-based)
 * Leverage ratio

The asset size of the 100 financial institutions on the Forbes list ranges from $5.2 billion to $2.3 trillion.

About Old National Bancorp

Old National Bancorp, which celebrated its 175th anniversary in 2009, is the largest financial services holding company headquartered in Indiana and, with $8 billion in assets, ranks among the top 100 banking companies in the United States. Since its founding in Evansville in 1834, Old National has focused on community banking by building long-term, highly valued partnerships with clients in its primary footprint of Indiana, Illinois and Kentucky. In addition to providing extensive services in retail and commercial banking, wealth management, investments and brokerage, Old National also owns one of the largest independent insurance agencies headquartered in Indiana, offering complete personal and commercial insurance solutions. For more information and financial data, please visit the Company's website at www.oldnational.com.

The Old National Bancorp logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1872

CONTACT:  Old National Bancorp
          Kathy Schoettlin
          (812) 465-7269
          www.oldnational.com

Source: http://money.cnn.com/news/newsfeeds/articles/globenewswire/181658.htm

The city of Evansville says controlling its own water and sewer systems is expected to save approximately $14 million over the next five years. Evansville Water and Sewer Utility will take over the systems from private companies. Mayor Jonathan Weinzapfel says "private management has not fulfilled expectations nor provided the necessary level of industry expertise."

(EVANSVILLE, IN) – Mayor Jonathan Weinzapfel today announced that the Evansville Water and Sewer Utility will take over the operation and management of the City’s water and sewer systems, leading to an estimated savings of approximately $14 million over the next five years compared to current costs under the existing contracts.

“We will be able to better control costs, direct staff more effectively, and put a management team in place that will allow the Utility to run the water and sewer systems more efficiently than a private company,” said Mayor Jonathan Weinzapfel. “It’s the Utility’s experience that private management has not fulfilled expectations nor provided the necessary level of industry expertise. The savings we will realize under City control will go toward operations and capital improvements and allow the Utility to hire and retain expertise required to run a first-rate operation.”

The wastewater system is currently managed by Environmental Management Corporation (EMC) whose contract with the City was initiated in 1992. The drinking water system is managed by American Water.

A Request for Proposals (RFP) was issued in August 2009 as contracts with EMC and American Water neared the end of their terms. A review committee evaluated proposals submitted by EMC, American Water, United Water and Veolia, and decided that the operation and management of the Utility should be brought in-house.

The City will evaluate all positions at the Utility to determine appropriate management staffing levels. Most of the Utility’s front line workers are already City employees and the anticipation is that many of the current managers will be retained.

The Utility Board will formally ratify the decision made by the review committee during its January 12th meeting. The Utility will take over the operation and management in March 2010. American Water, which has purchased EMC, has pledged its cooperation through the transition. Residents should see no disruption in service.

Source: City of Evansville & Inside INdiana Business http://www.insideindianabusiness.com/newsitem.asp?ID=39521

After years of discussion, the U.S. Department of Veterans Affairs has decided on a location on Evansville’s far East Side for a new VA Outpatient Clinic.

An 11.1-acre site in the Waterford Park commercial subdivision is the proposed building site.

The land at 6226 Waterford Blvd. is just west of North Burkhardt Road and is behind Integra Bank and Kruckemeyer & Cohn Jewelery. The main entrance to the three-story clinic will be off Waterford Boulevard, which is off Burkhardt north of East Lloyd Expressway.

The facility is the second new government building announced within a week. On Dec. 30, plans for a new Social Security Administration building at 2300 N. Green River Road, south of Menards, were revealed.

The site was chosen for its easy access to I-164 and other major thoroughfares and surrounding businesses and services.

“Everything, including amenities such as shopping malls, hotels, movie theaters, restaurants and offices, are all located within two miles of the location,” said Mike Richardson, a broker/developer with Remax Commercial Services who led the site search the past 21/2 years.

“This is where the growth is taking place and that is why the site was selected.”

City bus service includes routes in the area, according to the METS office.

Greg Wathen, president of the Economic Development Coalition of Southwest Indiana, said the new clinic will be a regional draw that will enhance the Tri-State health care sector.

“It will bring people into the marketplace to purchase products and services. It’s a positive thing.”

No figures on the number of jobs the new clinic will create or the cost of the project were immediately available.

VA officials closed on the land deal Nov. 30, but didn’t release the news until Wednesday.

Summit Smith Healthcare Facilities in Milwaukee, Wis. — the lead developer assigned to the project — bought the land from Evansville-headquartered Decem Investments, Inc., a group which includes Dr. Sanford E. Schen, president, and developer Joseph A. Ream and other investors.

Ream said Summit Smith plans to lease the proposed building and land to the VA for 20 years.

No land sales figures were disclosed.

The start of construction on the all-green, high-tech facility is planned for this summer, if not earlier, weather permitting.

A fall 2011 opening is anticipated, Laurie Tranter, spokeswoman for the VA in Washington, D.C., said by phone.

Veterans from all parts of the nation, not just the region, will be served at the facility, she said.

The red brick clinic with white trim and 436 parking spaces is expected to replace the VA Outpatient Clinic at Walnut and Garvin streets near Downtown.

The new facility will include 95,908 net usable square feet of space, said Tranter.

Discussions about bringing a larger VA outpatient clinic to Evansville began more than five years ago.

The main building of the former Welborn Baptist Hospital was once seriously considered as a potential site.

In all, Richardson said, the Waterford Park site was one of more than 20 sites studied. “Basically, the sites were between locations Downtown and on the East Side.”

Richardson was aided by 15 current and retired VA leaders from Washington, D.C., and other areas of the country who surveyed each potential site carefully.

“All agreed unanimously on Waterford Park,” Richardson said. “No stone was left unturned.”

Source: http://www.courierpress.com/news/2010/jan/06/va-names-site-new-evansville-clinic/

SANTA CLAUS, Ind. — The Voyage, the newest (2006) and largest of the three wooden roller coasters at Holiday World & Splashin’ Safari, is accustomed to being the top wooden coaster — three years in a row — among readers of Amusement Today trade journal, which covers the theme park industry.

But the Voyage has solidified its heavyweight standing by finishing No. 1 in a more complex online poll popular with hard-core coaster fans around the world.

The survey by coaster buff Mitch Hawker of Wisconsin ranks The Voyage No. 1 based on 730 online ballots received. Its formula determines winners and losers based on “mutual rider comparisons.”

First place came down to The Voyage and El Torro, the 181-foot-tall coaster at Six Flags Great America in New Jersey.

But 77 riders who had ridden them both preferred The Voyage while 67 preferred El Torro.

Holiday World’s two other wooden coasters, The Raven and The Legend, finished No. 18 and No. 38, respectively, in Hawker’s poll, high enough to make the Southern Indiana attraction the top theme park for wooden coasters.

Hawker said by regaining the top spot in 2009 (after finishing first twice before), The Voyage tied a record for most appearances at No. 1 set by Tonnerre de Zeus in France and Shivering Timbers in Michigan.

At the other end of the poll, the Grizzly in Santa Clara, Calif., made it 15 years in a row in last place.

Holiday World spokeswoman Paula Werne said, “We’re thrilled to see The Voyage take the No. 1 spot in the two most respected roller coaster polls out there.” She said it’s hoped recent improvements to make The Voyage an even smoother ride will keep it in the top spot for years to come.

— Rich Davis

Source: http://www.courierpress.com/news/2010/jan/04/its-another-no-1-vote-voyage-coaster/