What is Better: take a Second Loan or Pay PMI?

Input Information
Property Information
Home Value : ($)
Additional Information
Annual PMI :
Down Payment :
  Standard 80% Loan Second Loan
Interest Rate : (%) (%) (%)
Length : Yrs Yrs Yrs
Points : (%) (%) (%)
Closing Costs : ($) ($) ($)
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Financial Analysis (Switch to Plain English)
  Standard 80% Loan Second
Points Value : $0.00 $0.00 $0.00
Closing Costs : $0.00 $0.00 $0.00
Total Closing Costs : $0.00 $0.00
Down Payment : $0.00
Upfront Cost : $0.00 $0.00
Amount Financed : $0.00 $0.00 $0.00
Monthly PI : $0.00 $0.00 $0.00
Monthly Payment : $0.00 $0.00
Total Interests Paid : $0.00 $0.00
Total PMI : $0.00 $0.00 $0.00
Total Payments : $0.00 $0.00
Plain English Help (Switch to Financial Analysis)

When you take out your home mortgage loan, you might want to consider taking out an 80/15 loan in order to avoid PMI. By going this route, you could potentially save a great deal of money, though your upfront costs may be a bit more.

Pretend the home you are interested in purchasing has a value of $0.00 and you are prepared to put down $0.00 as a down payment. With a standard 0 year loan with an interest rate of 0.000% and 0.000 point(s), you will have to pay $0.00 up front for closing and would have a monthly payment of $0.00. In the end, you will have paid $0.00 toward your home.

If you opt for an 80/15 loan, you can avoid making PMI payments altogether. Because it involves taking out two loans, however, you will have to pay a bit more in upfront costs. In this scenario, that amounts to $0.00.

Your monthly payments, will be slightly HIGHER at $0.00.

And, in the end, you will have paid only $0.00 – that’s a total SAVINGS of $0.00!