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Old 04-02-2008, 06:35 AM
bullabulla bullabulla is offline
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Quote:
Originally Posted by jIM_Ohio View Post
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
How can one get the second mortgage on the same property?

can any one explain

i am taking a mortgage by 5% down payment but would be interested in a second mortgage to reduce my PMI

please let me know
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