If you are looking for ways to save money on a home purchase, you will most likely need to get morgage insurace in addition to your home mortgage.  Most lenders will insist on morgage insurace if you are taking out a loan over 80% of the home value.  There are ways to avoid getting property insurance, one of which is to take out a second mortgage on your home.

 

If you do have to take out morgage insurace on your home, check to make sure there are no penalties for refinancing your loan.  Once your home value goes up, you can refinance a loan that is less than 80% of the home value.  Or, you can refinance your home if you have some extra money to put down on the loan to avoid the mortgage insurance.

 

If you are looking for ways to buy a home but don’t have a lot of money to invest, you will more than likely have to pay PMI, or morgage insurace.  By getting a second mortgage, even if it is a slightly higher interest rate, you may still end up saving money in the long run but not having to pay the insurance.