Is there any way around mortgage insurance?

Is there any way around mortgage insurance?

Aside from putting down 20% or more as a down payment, mortgage insurance can be avoided with a loan program such as an 80/20, where the borrower takes out a 1st mortgage (80% LTV) and 2nd mortgage (20% LTV) for the property. No down payment is required with an 80/20.

Another option is the Lender Paid Mortgage Insurance (LPMI). With this option, the lender pays the mortgage insurance, but offsets this cost by charging a higher interest rate.

2018-02-12T07:14:11+00:00