One Big Beautiful Bill (OB3) Private Mortgage Iinsurance (premium) Deduction

Effective 2025, and now permanent.

When you get a mortgage on a home, and the loan amount is greater than 80% of the value, you are required to have PMI.  The idea is that you are paying insurance premiums to insure the lender’s risk due to the high Loan To Value (LTV) percentage of the loan.  Normally, you can remove the PMI requirement once the mortgage is paid down to a LTV below 80%.

This deduction was allowed through 2021, then expired.  You can now once again deduct Private Mortgage Insurance (PMI) premiums paid on your mortgage.  Of course, you have to itemize in order to benefit from this deduction.  This deduction begins to phase out with AGI above $50K(single) / $100K (MFJ).