Re: PMI Private Mortgage Insurance - Keep Track To Save Money
If a person has PMI, they are better off going with an 80-15-5 program.
In every case I analyzed, I came out ahead 80-15-5 than we did paying PMI.
80 is 80% first mortgage
15 is 15% second mortage
5 is 5% down
if you can do 80-10-10 or 80-5-15, even better.
Make sure the 2nd mortgage is a fixed rate product.
80-15-5 should have:
a) a lower payment than a 95% first with PMI
b) a higher tax deduction than 95% first with PMI
c) have you get to 20% equity faster than a 95% first with PMI
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