On Fri, Jul 13, 2007 at 05:02:02PM -0400, Doc Baldy wrote: > In terms of the PMI, I know that some lenders allow you to take out a > home equity loan to cover the 20% and thus avoid the PMI. For > example, assuming your house costs $100,000. You can get a mortgage > for $100,000 and have to pay PMI or you can get a mortgage for $80,000 > plus a $20,000 home equity loan. In the later case, you do not need > to pay PMI, or so I'm told.
You have to watch the terms carefully, though. The second loan is likely to be a balloon or ARM. You really should be comfortable with the math before going this route, and/or be prepared to refi or pay off the second loan within the allotted period (5/7/15 years are typical). The APR is likely to be beneficial relative to your PMI monthly payments, however, but you should check with each situation. Dan W. ---- You are receiving this because you are subscribed to the list named "UnivCity." To unsubscribe or for archive information, see <http://www.purple.com/list.html>.
