Is there Mortgage Insurance Required for Second Mortgages?
There is never any mortgage insurance required with second mortgages. That is why the 80-20 No Money Down Purchase Mortgage has become so popular with so many lenders. The 20% second mortgage allows the borrowers to avoid having to pay any private mortgage insurance(pmi). Most first mortgage lenders require pmi for loans when the homeowner is above 80% Loan to Value. With second mortgage loans pmi isn't required, so you won't have to make that silly payment each month.