Did anyone do the 80/10/10 mortgage?

ARe there any benefits to it? I dont think we're going to be able to afford 20% on anything...but I was told to avoid PMI you can do the 80/10/10.

any info would be greatly appreciated!

Re: Did anyone do the 80/10/10 mortgage?

We did a home equity line of credit for 8% (the amount we put down ended up being 12%).

I was told that our other option would have been to get PMI, which is not deductible. The rate on the heloc is less than the mortgage and I believe we actually have the option of borrowing against it if we need/want (which we aren't planning to do since we just want to pay it off.)

To me, the main benefit was that we can deduct that second loan whereas the PMI money was just going out the window.

Re: Did anyone do the 80/10/10 mortgage?

We did an 8/15/5 and avoided PMI. We only put 5% down.

Re: Did anyone do the 80/10/10 mortgage?

We did 80/10/10 and avoided PMI. This way we are able to deduct the interest we pay for both from our taxes. PMI isn't deductible.

Re: Did anyone do the 80/10/10 mortgage?

Yes, we did the 80/10/10 too- so we have two mortgages- both at fixed rates- the large one has a very good rate but the small one doesn't. Because it is so small it only means a difference of $15 dollars a month- it was worth it to avoid PMI. as a house's equity grows (hopefully it will!) we can refinance then.....