Comments on: PMI or Piggyback Mortgage? http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html personal finance blog with anecdotes, advice and commentary. Sun, 08 Nov 2009 14:07:29 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: credit repair http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html/comment-page-1#comment-28981 credit repair Sun, 01 Oct 2006 01:24:45 +0000 http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html#comment-28981 You did very well getting low 7.5% on the second mortgage, even in 2005, but normally the best way would be going for LPMI, which is Lender Paid Mortgage Insurance. You get one mortgage and depending on the program, credit and down payment, your rate will be somewhat higher. It is tax deductible and you have one loan. Here is the page explaining this concept in detail. http://www.bad-credit-advisor.com/lender-paid-mortgage-insurance.html. You did very well getting low 7.5% on the second mortgage, even in 2005, but normally the best way would be going for LPMI, which is Lender Paid Mortgage Insurance. You get one mortgage and depending on the program, credit and down payment, your rate will be somewhat higher. It is tax deductible and you have one loan. Here is the page explaining this concept in detail. http://www.bad-credit-advisor.com/lender-paid-mortgage-insurance.html.

]]> By: Todd Derscheid http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html/comment-page-1#comment-175 Todd Derscheid Sun, 03 Apr 2005 04:00:55 +0000 http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html#comment-175 We bought a small townhouse in Houston (well under a hundred grand for 1586 square feet) with an FHA loan four years ago. Our excellent credit got us a decent rate on a single loan. Since we went with PHH mortgage (the mortgage arm of military-spawned insurance giant USAA), their customers' lower-than usual rate of default made PMI a better option overall than a piggybacked loan, or so it seemed at the time. I took several business trips where I received a Per Diem. Anything extra was applied straight to the mortgage. We refinanced a year and a half ago with our local credit union, down to 4.5% but resetting our clock to 15 years. The credit union handed us off to ABN AMRO. Overall, the reduction in our payment has allowed us to feel free to pay extra. That money probably ought to go toward a Roth, but all our funds have tanked or gone nowhere. Nothing is ever easy... Currently, I think we'll be mortgage-free on June 1, 2017. We bought a small townhouse in Houston (well under a hundred grand for 1586 square feet) with an FHA loan four years ago. Our excellent credit got us a decent rate on a single loan. Since we went with PHH mortgage (the mortgage arm of military-spawned insurance giant USAA), their customers’ lower-than usual rate of default made PMI a better option overall than a piggybacked loan, or so it seemed at the time.

I took several business trips where I received a Per Diem. Anything extra was applied straight to the mortgage.

We refinanced a year and a half ago with our local credit union, down to 4.5% but resetting our clock to 15 years. The credit union handed us off to ABN AMRO. Overall, the reduction in our payment has allowed us to feel free to pay extra. That money probably ought to go toward a Roth, but all our funds have tanked or gone nowhere. Nothing is ever easy… Currently, I think we’ll be mortgage-free on June 1, 2017.

]]> By: Caitlin http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html/comment-page-1#comment-93 Caitlin Mon, 21 Mar 2005 00:35:26 +0000 http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html#comment-93 We ended up getting quite creative with our financing and we're in the Boston area (talk about crazy). We were given the choice of doing our "piggyback" as a separate fixed loan OR as a HELOC (home equity line of credit) - not sure if this was due to our good FICO or something else. So by choosing the HELOC we didn't have a whole other set of closing costs and we had an interest only loan that saved our butts during our uber-lean year of 2003 - while I was unemployed and my partner was underemployed we only had to pay the interest. We have since refinanced, but the 80/15/5 with the 15% HELOC was a good deal and helpful...keep and eye out for that opportunity (though I highly recomment paying it down *like* its a fixed rate!) Good Luck! We ended up getting quite creative with our financing and we’re in the Boston area (talk about crazy). We were given the choice of doing our “piggyback” as a separate fixed loan OR as a HELOC (home equity line of credit) – not sure if this was due to our good FICO or something else. So by choosing the HELOC we didn’t have a whole other set of closing costs and we had an interest only loan that saved our butts during our uber-lean year of 2003 – while I was unemployed and my partner was underemployed we only had to pay the interest. We have since refinanced, but the 80/15/5 with the 15% HELOC was a good deal and helpful…keep and eye out for that opportunity (though I highly recomment paying it down *like* its a fixed rate!) Good Luck!

]]> By: Omar http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html/comment-page-1#comment-43 Omar Wed, 09 Mar 2005 03:30:28 +0000 http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html#comment-43 I'm not 100% sure about Baltimore, but I know "cheap homes" and "Maryland" don't usually go together... well, at least near Silver Spring/College Park. Best of luck! And thanks for the birthday wishes. :) I’m not 100% sure about Baltimore, but I know “cheap homes” and “Maryland” don’t usually go together… well, at least near Silver Spring/College Park.

Best of luck! And thanks for the birthday wishes. :)

]]> By: tim http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html/comment-page-1#comment-39 tim Mon, 07 Mar 2005 21:37:07 +0000 http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html#comment-39 I will have a great deal on a house in 18 mo - 3 years from now, I will sell you mine! I will have a great deal on a house in 18 mo – 3 years from now, I will sell you mine!

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