Avoiding PMI ...

I've been getting a lot of mail asking me this question. So, I thought I'd post an article regarding this topic ... there are tons of info on the internet, but I thought I'd help get some of you started.

One way to avoid PMI is to do an 80-10-10 mortgage which is 80% mortgage, 10% equity loan or second mortgage and 10% cash.

http://www.thinkglink.com/CreditFinance/cfc271.htm

That's what my hubby and I are doing and by doing so, we save about $200 a month avoiding PMI!

Let me know if anyone has any questions!

Cira

We're doing a piggyback mortgage/HELOC as well. It is saving us a few hundred and the interest on the home equity will be tax deductable (where PMI isn't).

Also, as well as being able to do an 80-10-10 it is possible to do an 80-15-5. The piggyback can either be two mortgages or a mortgage and an HELOC.

BTW, here is a piggyback vs. pmi calculator. I don't know how acurate it is but thought that it may be helpful!

calculator