How do I get around paying PMI insurance on a new home loan without having the 20 % down?

Answer 1

We didn't have the 20% either. Have you asked a realtor about an 80/20 loan? My husband and I just bought our first home last summer. We have two separate loans, both from National City. One is for 80% of our buying price and the other for 20%. We have two mortgage payments a month but overall we pay less a month than we would if had to pay PMI.

Answer 2

You can do an 80/20 loan. This is were you wil have a first mortgage for 80% of the purchase price and second mortgage for 20% of the purchase price. Before you go this route, keep in mind that as of this year, PMI is tax deductable.

Answer 3

You don't get by without PMI unless you put down 20% or more. The best you can hope is for the home to go up in value and then you can refinance. If you have more than a 20% equity, then you can drop PMI. You have to request dropping it because the lender will not volunteer to do it.

Answer 4

Your mortgage will be lower (thus lower payments). You won't pay pmi (this could save you a lot). You'll have more equity in the home (makes it harder for you to end up with negative equity if you go into home ownership with a decent amount of equity, especially with the reasonable prices these days).

Answer 5

You can take out 2 mortgages - one for 80% of the home's price, and the other for 20% minus any downpayment. It's called a piggyback combo.

Answer 6

The short answer, you don't. The long answer is that PMI is required on all loand of 80/20 or less. Do you think they will give up making money just because you don't want to pay?

Answer 7

You get a second loan. We call it an 80/20. Ask your local mortgage broker for more details.

Answer 8

I noticed that no one mentioned the obvious:

Wait until you HAVE saved up the 20%. People used to do this as a matter of course, you'll recall.

Answer 9

% rates may not work in your favor if you can't swing the 20% down + closing costs. You can get it but it will cost you.