Some lenders offer a low down piggyback or 80-10-10 loan program as way to avoid PMI. These programs stack an 80 percent first and a 10 percent second with a 10 percent down payment. The 10 percent second usually carries higher rates for a shorter term, typically 10 to 15 years.
Whether these programs save you money depends on long you stay in the house. Since the average length of a mortgage is now less than six years before payoff or refinance, it’s hard to justify going this route. Before committing, do the math and see where your break-even point is.
Whether these programs save you money depends on long you stay in the house. Since the average length of a mortgage is now less than six years before payoff or refinance, it’s hard to justify going this route. Before committing, do the math and see where your break-even point is.
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