Qualified mortgage insurance premiums may be used as an additional deduction until December 31, 2010, providing the deduction applies to the original purchase of a qualified residence. Once the taxpayer’s AGI (Adjusted Gross Income) is over $100,000 it is phased out by 10% for each $1,000 above $100,000. Once your AGI is over $109,000 your mortgage insurance premiums are not deductible. This deduction only applies to new contracts started between January 1, 2007 and December 31, 2010.