| When financing more than 80% of the value of the home you are purchasing or refinancing, there are several ways to avoid having to pay for costly private mortgage insurance. One of the easiest, and often cheapest ways to avoid paying PMI is to do a simultaneous closing, where the borrower finances 80% of the purchase price with one loan, then finances the other 20% with a 2nd mortgage. Often times, the payments on the two mortgages end up less than if the borrower had just one loan with PMI. Plus, the interest on the 2nd could be tax-decuctible. |
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