Is there a way to avoid paying outrageous PMI if you plan to finance 100% of a new home?
Anj asked:
My husband and I are planning to purchase a new home in the next couple of months. I know that traditionally, without 20% down payment, banks require you to pay PMI. While I understand the bank’s perspective on this, as a buyer – it seems like money thrown to the wind every month.
My husband has impeccable credit, so we can get a good interest rate. We just aren’t in a position to put 20% down at this time. I have heard about 80/20 loans, but I am not sure if that is a better option. I am only intrested in a 30 year fixed rate mortgage – no ARM! Do I have any other options other than PMI???
Gilbert
My husband and I are planning to purchase a new home in the next couple of months. I know that traditionally, without 20% down payment, banks require you to pay PMI. While I understand the bank’s perspective on this, as a buyer – it seems like money thrown to the wind every month.
My husband has impeccable credit, so we can get a good interest rate. We just aren’t in a position to put 20% down at this time. I have heard about 80/20 loans, but I am not sure if that is a better option. I am only intrested in a 30 year fixed rate mortgage – no ARM! Do I have any other options other than PMI???
Gilbert
