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as a rule of thumb, any time your 1st mortgage by itself exceeds 80% loan to value (regardless of having a 2nd mortgage or not) expect to pay extra either through PMI or a higher rate, period. PMI is useful in a situation where you are expecting a windfall after you take out the loan (like buying a new home before you sell your previous) - you can have a lower rate with PMI or a higher rate w/o PMI - if you accept the higher rate all the lender is doing is self-insuring the loan. payments between the two are similar but PMI is not tax deductible so technically its an advantage to take the higher rate.
A conforming (5.875 30 fixed) as one loan over 80% LTV doesn't exist unless you take PMI.
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