Good or bad idea to get a second mortgage?

I will soon be purchasing a home with less than 20% down. I will be paying PMI. Can I and should I get a second mortgage to get the first mortgage less than 80% LTV and eliminate the PMI?

3 Answers

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  • Bob
    Lv 6
    7 years ago
    Best Answer

    There are pros and cons for each and it also depends on the terms. There is a credit union in my area that will do a 90% LTV second mortgage with a 20 year term that results in a lower initial payment than taking a single 90% LTV loan with PMI. The PMI would stop after about seven years, but the loan payments continue for 20 years, so if you still have the same loans by then you will be paying more during years eight through 20. There are not nearly as many lenders as there used to be who will even do this. Ask your loan officer about the terms that are available in your area and compare the options.

    Source(s): Licensed Loan Officer in Ohio
  • ?
    Lv 7
    7 years ago

    You cannot take a loan for the down payment or closing costs. All mortgage lenders will reject your application

  • Bill
    Lv 7
    7 years ago

    You will have a hard time finding a lender for the second.

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