Is this legal?? - Posted by scott
Posted by scott on March 05, 2002 at 18:23:46:
Please advise if the following scenario is legal and doable:
1)I purchase a home for $80,000 with a mortgage from bank A
2)I get the home appraised and find out the market value is $100,000
3)I got to bank B and refinance by taking out a second mortgage for $80,000. Now since the house is valued at $100,000 and I take a loan for $80,000(to pay off bank A) will I be exempt from PMI?
By doing this I reduce my net payments while maintaining the same mortgage rates. Please advise if this makes sense or if I am grossly misunderstanding the game! Thanks