Raiderpam An 80 -20 or 80-15-5 conventional mortgage has an 80% 1st loan and a 15 or 20% second. When the 1st mortgage is only 80% there is no PMI. hope that helps fla-tan
Some people do a 80 10 10 or some other percentage to avoid paying PMI. They get a 1st trust for 80% and then a 2nd trust for 10% and then put down 10%. You can change the percentages as you wish. I believe this is the most common way to avoid paying PMI. Some do ARMs or buydowns; however, this is mainly to keep payment down not to avoid PMI. Mike G.
