From: "John A. Weeks III" 
Newsgroups: misc.consumers.house
Subject: Re: First time home buyer
Date: Thu, 31 May 2007 06:59:52 -0500

In article ,
 Tim Smith  wrote:

> In article <1180558626.991021.158900@g4g2000hsf.googlegroups.com>,
>  Slain  wrote: 
> > I also do not have the 20% needed for downpayment. What are some
> > options I can have?
> 
> One possibility is 80-10-10 financing.  You take an 80% normal mortgage, 
> and make a 10% down payment, and take a home equity loan equal to 100% 
> of your equity (which is 10%).  The home equity loan plus your down 
> payment makes 20%.

Doesn't the higher interest rate on the HELOC portion offset
the savings of not having PMI?  Wouldn't one be better off to 
work hard to scrape up as much down payment as they can, take
the PMI, then bust butt to pay down to 80% to eliminate the
PMI fee?

-john-

-- 
======================================================================
John A. Weeks III           952-432-2708            john@johnweeks.com
Newave Communications                         http://www.johnweeks.com
======================================================================