For anyone that buys a home after January 1, 2007, the PMI will now be tax deductible for people with annual incomes of $110,000 or less.

 PMI is a mortgage insurance that your mortgage company makes you pay if you put down less than 20% when you buy your home.

This tax break makes homeownership more affordable and gives further incentives for folks to own their own homes.

Approximately 10 million people use mortgage insurance and this tax break is expected to save the average homeowner $200-400 a year.