I don't recommend getting a loan on top of a loan. You may not even get such a loan (this would be subject to qualifying) and you have to disclose it to your 1st mortgage lender. And - the loan upon loan could be so stressful - it would destroy your pleasure of having your own home.
You can also save up funds to pay off the principal to get you out of the PMI zone, once you are ready.
If you like this option, read your note before signing it, to check that this is allowed by your lender. Make sure there is no pre-payment penalty.
Hope this helps,
Beachfront Realty, Inc.
80/15/5 used to be common....years ago to avoid PMI.
You just have to let them run different options for you to see what works best for your situation.
let him know that I sent you
Anna Maria Durr, NMLS 266699
Codemark Financial, LLC
4500 Highway 6, Sugar Land, TX 77478
These are great for your situation.
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
best of luck .. Bruce
Your speaking of a 80-15-5 loan where your going to get a 2nd small loan of 5% of the sales price and apply this to the first mortgage, thus avoiding PMI fees?
Lenders are just starting to do those again. The interest rate on the small 2nd loan is a bit higher, but should be able to be paid off quickly.
Before you try to go this route, find out if you qualify to write-off the PMI fees on your taxes if you did not put 20% down. Private Mortgage Insurance (PMI) is typically not a cost you can write-off on your federal tax returns, but a few years ago Congress made an exception for those making lower incomes, first time buyers, etc. Your CPA or lender should know the qualifications. Going this way would save you more money than getting the 2nd loan and not paying PMI in exchange for interest that is tax deductible.
Interest rates will be slightly higher next summer so making a move now would save you some money. Let us know if we can assist you.
Bernstein Realty, Inc.
Financing your closing costs would cost you as much as PMI in the long run.
I have 3 super local lender that can help you if you wish.
Check out my website and send me a message.