Ways To Avoid PMI On My Mortgage - In todays market, there are many ways to avoid private mortgage insurance (PMI) even when you dont have the standard 20 percent down payment.

Ask your mortgage professional to prepare a comparison of Lender Paid MI, Regular PMI, and combo financing such as an 80/10 loan. You can then decide which option works best for you.

One of the most popular ways to avoid PMI (Private Mortgage Insurance) is to do a "combo loan" or "piggyback". This PMI-avoidance strategy may also be referred to as an 80/20, because it essentially uses two loans, a first mortgage and a second mortgage, taken out simulataneously. By using two loans to purchase or refinance the home, your first mortgage may be limited to just 80%, thereby obviating the need for PMI/Private Mortgage Insurance, and a second mortgage for the remaining 10% or 20% (depending on you down payment) can be used to make up the difference in the purchase price or refinance amount.

Another way to avoid PMI is to obtain a mortgage from a sub-prime lender that does not charge PMI on their loans, even if the Loan to Value is over 80%. There are many lenders who do not charge PMI on their loans, however you will generally receive a higher interest rate on these loans. Usually, you can obtain 1 loan though with these types of lenders versus having to do a combo loan and obtaining 2 loans. Consult with a mortgage professional to see if this may be the best option for you. A quality mortgage professional will be able to work up multiple mortgage options so that the best choice can be chosen to meet your financial needs.

Some lenders have LPMI which stands for Lender Paid Mortgage Insurance. Also, you can split your loan into two loans. This is usually called an 80/20.