http://www.mortgagenewsdaily.com/wiki/Wiki-GeneralMortgage.aspMortgage Questions and AnswersenCommunityServer 2008 SP2 (Build: 31106.96)http://www.mortgagenewsdaily.com/wiki/4319/AnswerQuestion.aspTue, 06 Mar 2007 05:00:00 GMT2bb7a989-b681-446d-a7f2-bd5f0562f228:4319Adam Johnston0http://www.mortgagenewsdaily.com/wiki/4319/AnswerQuestion.asphttp://www.mortgagenewsdaily.com/wiki/4319/AnswerQuestion.asp<p>There are several ways to do 100% financing. You can do a single loan to 100%. The problem with this is that you have to pay private mortgage insurance (PMI) if the mortgage exceeds 80% of the value or purchase price. Mortgage insurance can be expensive. This year, Congress passed a law making <a href="http://www.mortgagenewsdaily.com/12122006_PMI_Deduction.asp" target="_blank">mortgage insurance tax deductible</a> for loans closed this year with PMI.</p> <p> The 80/20 or 75/25 breaks your mortgage into two loans. This eliminates the private mortgage insurance as the first mortgage does not go over the 80% <a href="http://www.mortgagenewsdaily.com/wiki/Loan_To_Value.asp" target="_blank">loan to value</a>. It is very often less expensive to do two loans compared to a single loan, but each situation needs to be priced to see which option is better.</p> <p> Many lenders increase their pricing with a higher loan to value because there is a higher risk for the lender. Make sure you find out if you can qualify for a community type of 100% financing and your mortgage insurance factor. Community programs have much lower mortgage insurance.</p><div style="clear:both;"></div>http://www.mortgagenewsdaily.com/wiki/80_20_home_mortgage_loans/4317.aspxTue, 09 Jan 2007 05:00:00 GMT2bb7a989-b681-446d-a7f2-bd5f0562f228:4317Anonymous0http://www.mortgagenewsdaily.com/wiki/4317/AnswerQuestion.asphttp://www.mortgagenewsdaily.com/wiki/4317/AnswerQuestion.aspWhat is an 80/20 zero down mortgage? Why should I use it?