Using a 2nd mortgage to avoid Mortgage Insurance

If you have bought a home and put down less than 20% of the sales price, you are probably familiar with the term Mortgage Insurance.  Unfortunately, this insurance does nothing to protect you, it is there to protect the mortgage lender in the event that you default on the mortgage.  Prior to the housing collapse in 2007, there were many creative ways to structure a mortgage to avoid this insurance with less than 20% down.  After 2007, many of those options went away with every other type of creative financing.  It looks like one of those options is making a comeback, Using a 2nd mortgage to avoid Mortgage Insurance.  The way this works is you get a 1st mortgage for 80% of the purchase price (which avoids mortgage insurance).  You put a downpayment of at least 5% down, and then you get a 2nd mortgage for the difference.  Using this method can save you hundreds of dollars per month depending on how much you are borrowing.  Please note that this option is only available for Conventional type financing.  If you have questions or know of someone who could benefit from this, please contact me at 317-563-1122 or chris@chrisminorteam.com.