The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

A Question for Diane K.

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

palazzi

PARKED
Feb 27, 2008
2
0
8
I'm buying an investment property, and the lender is offering me the following options:

1) 10% downpayment with PMI.

2) 10% downpayment with 2 fix loans, so I don't have to pay PMI.

Question: Is the PMI tax deductible?

Thank you.
 

Don't like ads? Remove them while supporting the forum. Subscribe.

EasyMoney_in_NC

Contributor
Sep 9, 2007
399
31
31
Wilmington NC
Like my wife always asks me......
"why do you want to spend $100 to hope to save $30?" Take the 2 loan route, PMI is a waste and you'll need to appreciate past 80/20 LTV (and prove it via appraisal) to lift it (more $$)
Take the loans and refi some day if thats what makes sense. Of course you didn't tell us the terms of these two loans but..........
 

Corrado79

New Contributor
Sep 24, 2007
86
4
12
Santa Monica, CA
Like my wife always asks me......
"why do you want to spend $100 to hope to save $30?" Take the 2 loan route, PMI is a waste and you'll need to appreciate past 80/20 LTV (and prove it via appraisal) to lift it (more $$)
Take the loans and refi some day if thats what makes sense. Of course you didn't tell us the terms of these two loans but..........
Good advice, I would just point out one thing. If you go the PMI route, you only need an appraisal (once the LTV reaches 80/20) to remove the PMI. But if you go the 2 loan route, you will need to refinance to remove the 2nd loan. That is much more costly than an appraisal.
 
OP
OP
P

palazzi

PARKED
Feb 27, 2008
2
0
8
Thank you all of you for your prompt response, and wise advise.
 

AroundTheWorld

Be in the Moment
Speedway Pass
Jul 24, 2007
2,909
1,887
550
.
This is an old post, and probably not relevent to this individual anymore, but in a situation like this - - - you would also want to look at interest rates.
 

EasyMoney_in_NC

Contributor
Sep 9, 2007
399
31
31
Wilmington NC
Good advice, I would just point out one thing. If you go the PMI route, you only need an appraisal (once the LTV reaches 80/20) to remove the PMI. But if you go the 2 loan route, you will need to refinance to remove the 2nd loan. That is much more costly than an appraisal.
Typically I'd say fair enough :) but in todays RE perfect storm, I wouldn't think that "appreciation" will happen (any time soon) to the point the 80/20 eliminates the PMI. Also the monthly money spent on PMI would probably pay for the closing costs of refi'g down the road (doesn't PMI still require 2 years before it can be waived?)

What it comes down to, is working out the monies to see which way is the best bang for the buck (calculating payments, rates, time frames etc...)

I realize this thread sort of died, but maybe someone else could gain from it?
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Dropping a quick note in here to say... if you are on TFL, you are part of an elite group of...
  • Sticky
MARKETPLACE Fox's Web Design Guide: Earn $100K this year (Yes, 2020!) and Go Fastlane
Hey @Simon Angel thanks for the write up. I think there is a ton of potential in all areas...
  • Sticky
MARKETPLACE How To Create A 100K-1M+ Sales Funnel
@Lyinx lol man, okay. Just to make it clear to everyone else, I'm not involved with...
  • Sticky
MARKETPLACE KAK’s “Kill Bigger” Incubation Program- With DAILY personal attention.
I joined @Kak's business incubator in the first week of May. During our daily chats we uncovered...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
This is your May reminder that you can do this. I'll keep it short. These are the May promos...
  • Sticky
MARKETPLACE Grow Your Business With a Book (An Unorthodox Marketing Strategy That Built One of the Largest...
Thanks! This is a cool idea, actually. I would like to use your experience as I heard that these...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
would this be available in paper version? I know it's short, but most of my family is...


Visit A Forum Sponsor
sponsor

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom
AdBlock Detected - Please Disable

Yes, ads can be annoying. But please...

...to support the Unscripted/Fastlane mission (and to respect the immense amount of time needed to manage this forum) please DISABLE your ad-block. Thank you.

I've Disabled AdBlock