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Originally Posted by Peaches
So on an interest only loan you're forking out PMI, right? Money thrown away right there.
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PMI is only for loans over 80% the value of a home. Most people do combo loans or specialty loans with lender paid MI. In the last year out of 4.5 Billion in residential mortgages we did only about 2-3% had PMI and that was usually because the LTV was about 80-85% and they would be paying it down and dropping the PMI.
But yes, PMI is a waste of money, no tax deduction, etc.