Mortgage Lending Library
80 20 Mortgage
Tired of paying mortgage insurance? There may be a solution for you. 80/20 mortgage loans are rising in popularity. By setting up a trust at 80% of your purchase price, most lenders allow you to forego the cost of private mortgage insurance (PMI). A second trust is set up at 20% of the purchase price. Fixed rates on the second trust are generally fixed rates for the life of the loan, thus offering savings in the long run. Want to know another benefit? PMI is not tax deductible! By dropping PMI out of your mortgage, your entire loan is 100% tax deductible. Match with Lenders now.