Warning: include() [function.include]: URL file-access is disabled in the server configuration in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78 Warning: include(http://www.hurryloan.com/rightbar.php) [function.include]: failed to open stream: no suitable wrapper could be found in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78 Warning: include() [function.include]: Failed opening 'http://www.hurryloan.com/rightbar.php' for inclusion (include_path='.:/usr/local/share/pear') in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78   Go Back To Search Results Question Is it better to be charged PMI or take out a 2nd mortgage if I want to lower my monthly payments? We'll only be putting 10% down on a $370,000 home, hopefully getting a 6% interest rate. Is it better to pay PMI on the $333,000 or take out a second mortgage for a percentage of the $333,000? By LCassidy Posted on 02/27/06 Total Answers 2 Answers- PMI is evil. Don't pay it. It is a forced insurance that is way overpriced. Do an 80-10. There is a slightly higher rate on the last 10%, but it is a competitive rate. The PMI is nothing you get to shop around for and therefore can't get a good rate. Ask your loan officer, or mortgage broker or whomever you are using to give you a good faith estimate for both. You will find the 80-10 is much better. PMI is evil. Not convinced yet? lets say you pay it off 5% and the house increases by 10% in that time. Should be a cinch to get the PMI removed right? 75% LTV ratio. WRONG, they will not remove it without a fight that usually consists of paying for it for quite a while. Just don't get it in the first place! Answer by : brian-the-brain On Date 2006-02-27 14:14:16 PMI is awful. Even if you come up with the cash shortly after closing to bring the Loan to value to 80/20, the bank cannot remove PMI for two years. PMI will be well over $100 a month....Is there any chance you could dispute the appraisal and see if the value of the house could be higher? That is what triggers the pmi...not the price you paid, but the value on the appraisal...STAY AWAY FROM PMI... A good realestate tool is http://www.jeacle.ie/mortgage/ Answer by : heatherhammar On Date 2006-02-27 14:34:30   Go Back To Search Results