For home buyers who have PMI or federally insured MMI through FHA, the tax deduction has expired.  Enacted in 2006, the write off was a big benefit to home buyers. This makes the use of a second mortgage in lieu of PMI much more appealing to consumers as the interest on the second mortgage will still be tax deductible when the PMI will not.  We can run a side by side comparison to see which makes more sense.  Make sure you keep this in mind while doing your tax planning for 2013 and beyond.  Attached is an article from LA times that details the change.,0,6735338.story