The deduction for private mortgage insurance (PMI) payments lapsed after 2021, but OBBBA restored it permanently beginning in 2026. If your down payment on a home is less than 20% of its cost, the mortgage insurance premiums you pay can be deducted similarly to mortgage interest. This applies to PMI on conventional loans, as well as insurance premiums on FHA and USDA loans. The deduction phases out at higher income levels.