ANSWERS: 1
  • Consult your loan officer! Both payment options should be calculated and fully disclosed to the comsumer. Apparently, the 80/20 will consist of two separate mortgage payments and the 100 with mortgage insurance will consist of the actual mortgage payment with the additional payment to MI calc'd in. As you can see the payments will vary, some times substantially, sometimes not. In addition, the MI will not drop off until the subject property value increases so that the LTV (loan to value) falls at or below 80.00%. With the current economy the way it is...it's anyones guess on how long the proerty will appreciate in value. Good luck!

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