When Loan-to-Value (LTV) ratio is less than 80% the home owner pays an extra amount for the mortgage to an insurance company to protect the lender

Insurance at .0052% of loan value annually on a $700K → $3,640/year

Mortgage insurance became tax-deductible in 2007 asr an itemized deduction for homeowners earning up to $109,000 annually. The original law was extended in 2007 to provide for a three-year deduction, effective for mortgage contracts issued after December 31, 2006 and before January 1, 2010. It does not apply to mortgage insurance contracts that were in existence prior to passage of the legislation