For loan closings in 2007, the mortgage insurance premium will be tax deductible if the household adjusted gross income is 100K or less. The deductibility decreases by 10% for every 1K in annual income that exceeds 100K. This means that household incomes greater than 109K receive zero PMI deductibility. Congress is supposed to evaluate the law at the end of the year for a possible extension. This will compete with the popular way to avoid mortgage insurance by piggy-backing with a double loan–one with 80% loan -to -value and a second loan to cover the remaining 20%. This also means the second mortgage will usually will be at a higher rate. If you qualify for this program, have your lender check both ways to see which one gives you a lower monthly payment.