What is PMI, how can I avoid it, and is it tax deductible?

PMI or private mortgage insurance is currently not tax deductible.  The mortgage industry wants the insurance to be tax deductible and Congress is currently considering changing the tax laws in 2004 and 2005 to to make it deductible like mortgage interest.  Consider refinancing your current loan so that you have at least 20% equity in your home to avoid private mortgage insurance.