To amend the Internal Revenue Code of 1986 to allow a deduction for premiums on mortgage insurance, and for other purposes.

This bill would allow homeowners to deduct the cost of their mortgage insurance premiums from their federal income taxes, treating them similarly to mortgage interest. The deduction is designed to lower the overall cost of homeownership for individuals who were required to purchase private or government-backed mortgage insurance, typically because they made a down payment of less than 20 percent.

The financial benefit would be targeted toward low- and middle-income households, as the bill includes a phase-out provision that reduces or eliminates the deduction for taxpayers with higher annual incomes. While this specific 2003 legislation did not become law at the time, the concept was later adopted in subsequent tax laws to provide temporary relief for qualifying homeowners.