Quote:
Originally Posted by project15
We avoided PMI by doing an 80-10-10 loan with 10% cash and 10% on a secondary loan. The secondary loan is at a slightly higher rate, but over the life of the loan, we are saving money doing it this way vs. putting 90% onto the primary loan and paying PMI
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This is not always an option now that banks are limiting their risk. In many areas of CA, FL, NV, OH, MI, IN, AZ banks will only lend up to somtimes as low as 65% Combined loan to value (CLTV) on 2nd mortgages. I would say every day I decline at least 5 people I could have approved 9 months ago.