We're throwing a lot of numbers around here, so let's round them off and not worry about the pennies. It's not how much equity you actually have in the house. It's the value of the loan compared to the value of the house. Gentry says you can get around the problem by taking out a first and a second mortgage, with neither mortgage being for more than 80 percent of the total value. So let's look at the same home, with no down payment, but with two mortgages.
Second mortgages are more expensive.
Plus, there is no down payment. Ask your mortgage lender if obtaining two mortgage loans instead of one loan with PMI is best for your situation. Gentry says the pricier the home, the more complicated and expensive the process of getting the loan is. Now that's a payment that could make someone with chateaubriand taste learn how to love chilidogs. All rights reserved.