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5% down - can I do a 95-5 OR a 80-15-5?


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Ok, have a contract on the house now so down to the wire as to figuring out which lender to go with...one lender is offering 80% 1st mortgage with a 15% 2nd with my putting 5% down...another lender is offering 95% 1st with no pmi (BofA) but why would the other guy not offer me 95%? He acts like the only way I'll get out of paying pmi is to have a 2nd for 15%....

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There aren't too many 80/15's out there any more, so the fact that he is even able to get it is good. That is one way to get out of PMI and traditionally offered a better overall mortgage structure than a straight 95% with PMI or without PMI. A straight 95% without PMI will result in at least a 1% higher rate than the same 95% single loan with PMI, so the trade off is debatable as to whether it really makes sense. A good mortgage planner should be able to present you with all 3 options and make recommendations based on long term projections specific to your goals with the home (how long you will be in the home, your long and short term financial goals and investments, etc).

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