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Originally Posted by onlydarksets
Also, in an 80/10/10 (the typical breakout for what FRPLG describes as an alternate to PMI), the second trust has a higher interest rate than the primary mortgage. Have your agent do the math - PMI may be cheaper than an 80/10/10. My uncle just bought a house and that was the case.
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Very true. Also to be considered is that even with the higher interest it is all still deductible on your income taxes while PMI never is. So even if it somewhat more expensive than PMI it might end up being cheaper after taxes. onlydarksets is right...have a good agent run the numbers.