This is additional information with regard to my previous post on PMI becoming tax deductible.

Please be aware the ability to deduct private mortgage insurance (PMI) is only available for loans originated in 2007 and only for PMI paid in 2007. The bill that passed this piece of legislation had this benefit tucked into larger legislation. Unless the lawmakers agree to extend this benefit to coming years; in my view, the entire thing is"?a big, flat balloon. I certainly would not recommend it to my loan clients without additional laws being passed or the current legislation being extended indefinitely.

"?Here are a couple of different ways you can go to get the long term benefit you are seeking:

1. Find a lender who will include the PMI into the rate. If you have put 10% down, the bump in your interest rate on the loan is likely to be .500%. If your initial note rate is 6%, then the rate with the included PMI is 6.50%.

2. Continue on with the accepted practice of"?a HELOC or a CLOSED END Second. I would recommend that a borrower go with a fixed rate home equity line of credit or simply doing a 2nd trust deed or mortgage."?Those with adjustable rate 2nds need to seek a fixed rate! Speak with your bank or trusty loan officer.

Either one of these scenarios will guarantee your ability to deduct the cost of "PMI" over the life of your loan; regardless of whether additional legislation is introduced.