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What can we do when buying a home to avoid having to get PMI?

We are buying a home worth $612,000. We are bringing $80,000 for the down payment. Our current home is underwater, which we will rent. We are considering doing an 80-20 to avoid PMI. However, with the second mortgage prime high, this is not helping us with getting a lower monthly payment. Is there anything else we can do? We have no means to get another $45,000 for a 20 percent down payment. The delivery date for the new home is July, so we need to do something quickly.

Debt, Real Estate
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April 2019

In my opionion, if the 45k isnt there, it isnt there, yet. I was in a similar situation to this a few years ago, and had to pay the PMI. but after about 2 years I was able to refinance the home, and the equity growth of the property eliminated the PMI. I would not suggest getting a loan or adding debt for the sake of PMI. I would also consider speaking to various loan officers on what options are out there! you never know what the next person will know!

Good luck!

-Jordan Jones, RFC

April 2019
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