Return to article: How to Get a Loan Without Private Mortgage Insurance (PMI)
on 11/22/2005 If you can put down 10%, then borrow 80% on a first mortgage, the remaining 10% on a second. No PMI, all interest is deductible.
on 11/22/2005 A borrower may also apply for a "piggyback" loan, splitting the 80% loan and the remainder 20%. PMI will thereby be dropped or not issued.Ginger FariaMortgage Broker
on 11/22/2005 You don't necessarily need to pay the mortgage down to 80% of the original loan to get rid of the PMI. If the value of your home rises so that the magic 80% loan to value is reached, you can request to have the PMI dropped. You would need to have an appraisal done when this value is reached.
on 11/22/2005 Get a 1st mortgage for 80%, and a 15% 2nd mortgage. There will be no PMI! The interest is higher on the 2nd, but the interest is tax deductible, and MI is NOT.
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