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Are you still able to take out 2nd PMI loan to avoid fees?

Working on the details of a new construction home right now and while we haven't met with any lenders yet, the sales person at the builder told us that lenders are no longer doing the piggyback PMI loans.  We have a decent amount of equity in our current house but not enough to avoid PMI.  We currently have a 2nd loan to avoid paying PMI.  Are lenders still doing this, or is the building blowing smoke because their "family owned" lender that they recommend doesn't do it?   



Thanks!
  • October 29 2009 - Pittsburgh
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Answers (4)

Many Lenders are out of the 2nd mtg biz. Maybe your local Bank? If that does not work just pay the PMI. It usually ends up being the same monthly payment as if you had a 2nd (which will have a higher rate). Plus the PMI goes away saving you money in the long run. That high rate 2nd will be there for the next 20 years unless you pay again to refinance it. And who wants "2" mortgage bills to pay? One is enough for me!  ; )

Why is everyone so afraid of PMI??
  • October 29 2009
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many aren't lending on 2nds but many are so check locally on that...
  • October 29 2009
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If you dont make too much money it is tax deductible now, which was the whole reason to use a piggyback in the past
  • October 29 2009
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check with PNC Bank. I believe they offer a 1st/2nd combo loan up to 89% LTV
  • October 29 2009
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