I've been told that you can avoid pmi with a piggy-back loan. How does that work?

A long time ago, in a land far away, there was a loan called an 80/10/10.. where you could finance an 80% first mortgage, and do a 2nd mortgage for 10% and put 10% down (or any combination so long as it's an 80% first).. by doing this, you would avoid paying monthly MI, since the first is at or below 80% Loan to value.. aahhh the good ole days... although there might be a few banks out there coming back with a product like this, in general, it's just not available.. And for those few who are doing them, good luck finding them.. And be prepared for a very high interest rate on 2nd... the better option would be to do an upfront MI payment one time.. it might be as much as 2% of the loan amount, but in the long run, it's much cheaper than paying monthly, or having to refinance in the future to remove MI.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

It used to be that you could do an 80/20 combo loan to avoid PMI but those are extinct.

A "Piggyback" loan is simply two loans used to purchase one home. It combines a first mortgage typically 80% of the purchase price and a second mortgage for the rest of the money needed. In the old days, you could do an 80/20, and I even had an investor that would do an 80/25. Today, you will need to put a minimum of 5% of your own money down, and finance the rest. There is no "Absolute" in the decision to "Piggyback" or "PMI". There are costs, benefits and recapture to consider. The size of the loan, the borrower's credit score, the Combined LTV (both loans), PMI premium, Interest rate loan term and time you expect to be in the home will all impact which option is best (or cheapest) for you. You will want to work with a local Licensed and experienced Mortgage Professional to help you determine which makes the most sense for your particular situation. Check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

I have options for seconds and am located in Newtown, Pa. Call me at your convienence to discuss to find out if this will sevice your .

My name is Patrick and I have been helping familys reach their home financing goals for over 17 years. I am right downtown in Newtown and will be in the office Friday and Saturday. I can explain not only how this is done but deliver. The key is does it make sense for your situation as you credit scores are a very important factor, repayment is important too. If you plan to put a lot down MI can be appealed. There is lender paid MI option, split MI. The best thing you could do is talk to loan officers and see what is offered and compare actual quotes. I can be reached at my desk anytime for a free consultation and pre-qualification with specific loan options to suit your credit profile and goals. Call to make an appointment tomorrow and congratulations on the prospective purchase of your new home.