In a future home purchase, we may not put 20% down. So we would likely end up paying a PMI premium for 5 or more years.
I heard there are alternatives to PMI. They include:
The first way is to look for a lender offering lender-paid mortgage insurance (LPMI), which eliminates PMI in exchange for a higher interest rate.
Second, buyers can opt for a piggyback mortgage — one that uses a second loan to cover part of the down payment and reach 20%, therefore bypassing the PMI requirement.
When you bought your home if you did not put 20% down, did you use either of the approaches above? If so, what was your experience and cost in comparison to a regular PMI payment?