PMI Still Deductible

PMI can be treated as deductible interest on your taxes for another three years, till 2010. This little proviso made it through as part of the Mortgage Forgiveness Debt Relief Act that passed into law late December '08.

My question is, who decided on three years and why? Do the powers that be expect that values will rise significantly in three years - or - is it that they plan to make it easier for purchasers to ask the lender to remove the PMI premium. The later can be quite difficult, it's a a great source of income for them.

Whatever the crazy thought process's of congress, you can still deduct those PMI payments until 2010.