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What is Better: take a Second Loan or Pay PMI? Input Information Property Information Home Value : ($) Additional Information Annual PMI : ($) (%) Down Payment : 5 % 10 % 15 %   Standard 80% Loan Second Loan Interest Rate : (%) (%) (%) Length : Yrs Yrs Yrs Points : (%) (%) (%) Closing Costs : ($) ($) ($)  Let Me Print That Form in PDF! Send calculation results to email Send to Email Address : Name : Phone # : Show Schedule Table Free calculators brought to you by H3 Homes, Inc. Financial Analysis (Switch to Plain English)   Standard 80% Loan Second Points Value : $2,700.00 $3,600.00 $300.00 Closing Costs : $1,200.00 $700.00 $1,000.00 Total Closing Costs : $3,900.00 $5,600.00 Down Payment : $30,000.00 Upfront Cost : $33,900.00 $35,600.00 Amount Financed : $270,000.00 $240,000.00 $30,000.00 Monthly PI : $1,449.42 $1,216.04 $253.16 Months With PMI : 78 0 0 Monthly PMI : $112.50 $0.00 $0.00 Monthly Payment : $1,561.92 $1,469.20 Total Interests Paid : $251,790.62 $213,344.38 Total PMI : $8,775.00 $0.00 $0.00 Total Payments : $530,559.60 $483,338.57 Plain English Help (Switch to Financial Analysis) When you take out your home mortgage loan, you might want to consider taking out an 80/15 loan in order to avoid PMI. By going this route, you could potentially save a great deal of money, though your upfront costs may be a bit more. Pretend the home you are interested in purchasing has a value of $300,000.00 and you are prepared to put down $30,000.00 as a down payment. With a standard 30 year loan with an interest rate of 5.000% and 1.000 point(s), you will have to pay $33,900.00 up front for closing and would have a monthly payment of $1,561.92. In the end, you will have paid $530,559.60 toward your home. If you opt for an 80/15 loan, you can avoid making PMI payments altogether. Because it involves taking out two loans, however, you will have to pay a bit more in upfront costs. In this scenario, that amounts to $35,600.00. Your monthly payments, however, will be slightly LESS at $1,469.20. And, in the end, you will have paid only $483,338.57 – that’s a total SAVINGS of $47,221.03!