How Can I Avoid Private Mortgage Insurance Costs?
August 28th, 2008 By Peter G. Miller
One strategy is to buy with 80-10-10 financing — an 80 percent first loan, a 10 percent second and 10 percent in cash. These are so-called piggy-back loans or simultaneous seconds. However, because of a large number of foreclosures piggy-back financing is now difficult to get.
Or, 75-15-10 financing — 75 percent from a first loan 15 percent from a second, and 10 percent in cash. Another piggy-back loan — and another loan that may be hard to get.
Be aware that second loans tend to have higher rates and shorter terms than first mortgages, thus they represent more risk to BOTH borrowers and lenders.
See lenders for details.
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