Unfortunately there is limitation on the deduction of PMI. For details see http://www.irs.gov/publications/p17/ch23.html#en_US_2012_publink1000296273 (which is the 2012 publication but still applies).
The amount of PMI allowed as a deduction is:
So, paying the PMI will not increase your deductions if your AGI is 120,000.
Hope this helps to know even though it is likely not the answer you would have preferred.
Please ask if you need more information or discussion.