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Sergio Said:

Buying 1st Home and Private Mortgage Insurance (PMI)?

We Answered:

I've seen some other answerers on other questions like this say that some banks will let you avoid the PMI if your appraisal give that 20% cushion. However in all my experience the bank will simply take the lesser of the sales price and appraisal and say they need a 20% cushion beyond those prices (ie is sales price is 100K and appraisal is 120K, they will still say the loan must be 80K or less, 80% of lower number, to avoid the PMI).

So, I think you are going to have to pay the PMI, no matter what (assuming you don't put 20% down). Note, however that after 3 years if your house appraises with more than a 20% cushion then they will get rid of the PMI at that point - ie you don't have to wait until you've paid down the loan to give you a 20% cushion you just have to prove at some point after the 3 year mark that you now have the 20% cushion.

Raymond Said:

Private Mortgage Insurance (PMI)-Is it refundable?

We Answered:

No, like the name suggests, it's mortage insurance through a private company. They're guaranteeing your loan should you default.

Michelle Said:

Is Private Mortgage Insurance (PMI) Deductable?

We Answered:

The deductibility of mortgage insurance depends on your income. See here:
http://www.irs.gov/newsroom/article/0,,i…

Mortgage interest, property tax and points paid (if any) are deductible. Not other refi fees.

Terrence Said:

Does anyone know if private mortgage insurance (PMI) is deductible in for 2008?

We Answered:

Yes it is as long as you have it. Untill you refinance and take it off. It is included in your payment and you will get a form pretty soon from your bank for tax purposes.