Lesson learned regarding PMI

PMI is literally like throwing money into a hole and lighting it on fire. You get no tax benefits from it, you get no benefit at all from it other than a sunk cost. With 10% down, you can do a piggyback loan for the other 10% and avoid the PMI entirely. That second loan will probably only be a quarter-point higher than your primary mortgage, which will save you ogles of cash over the long haul.

You talk about second mortgages not being able to be canceled out....well yeah, because it's part of the purchase price. PMI is literally just a fee. All due respect, dude (which isn't a lot, I have to say) but I feel bad for clients that take your advice on these grounds. In high COL areas, PMI alone can be 7-800 dollars a month.

/r/personalfinance Thread Parent