Is a Second Mortage better than PMI?
If you are planning on putting less than 20 percent down on your Cincinnati mortgage, you will have to make the decision between purchasing private mortgage insurance, commonly referred to as PMI, or adding a "piggyback" second mortgage to finance the difference between your down payment and 20 percent. The key difference is that because PMI is an insurance and none of the amount will create equity. However, even though you will gain equity by paying on the second mortgage, many second mortgages have higher and adjustable interest rates, while PMI is a fixed, constant cost. Be sure to ask and calculate the whole cost of either choice before making your decision.
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