|
The reason the 80/20 is so popular VS PMI is that dollar for dollar, the payments are identical with 1 loan with add on PMI vs. 2 loans with a higher rate 2nd.
PMI isn't tax deductible so the 80/20 wins. PMI on 100% financing is ugly, so is the rate. Conforming (Conforming = best rate 30/fixed everyone wants) doesn't do 100% 1 loan, in fact it's maximum of 90%, so on top of that the rate is ugly.
100% one loan products do exist without PMI, but the payment after it's all factored is close to an 80/20, qualification is harder, so in the end it's basically all the same.
PMI is only useful if you intend on paying down the home loan (like if you're waiting to sell another property and you want to close). Then, by all means I advocate PMI.
rjp
__________________
In the movies only bad guys sleep in king size beds.
|