The first is a series of mortgages

The first is a series of mortgages that 80% of the value of the asset financing, they are not private insurance and second mortgage, the funds are worth 20% of the value of the assets in the form of half a mortgage or loan increase.
How to pay and private mortgage insurance (PMI)
These loans or a combination of loans and mortgage problem, because 100% financing has to overcome a very heavy burden. The loan financed 80% of the value of the property to a private mortgage insurance covering the repayment of the loan if something happens. There, the credit 100% financing without private mortgage insurance provides.
Private mortgage insurance is not necessary that the current fund only 80% of the property. Remaining value of assets with a second loan or mortgage financing for the house to cover the remaining 20% ??without the need for private mortgage insurance.
Private Mortgage Insurance
Private mortgage insurance protects the lender against loss in case of default of mortgage loans. Insurance and other government agencies such as FHA insurance, the only difference for private loans. The premium is paid by the borrower, and generally, in monthly installments of the loan.
In general, these can be used to see in addition by providing a significant down payment and no more than 80% of the necessary funds for the property as collateral for a loan to buy. Therefore, most applicants for at least 20% of the value of the property to try to collect in order to avoid private mortgage insurance premium is to pay very expensive.
Issue of cost
Nothing is free and you will receive additional funds through 80/20 mortgage is no exception. This credit provides the necessary tools for 20% deposit is at a high rate, short repayment schedule conditions are less favorable than those of the loan agreement. This is based on the fact that the loans are secured home equity loans, there is a greater risk of default on a home loan on a home loan.
However, when comparing the cost of private mortgage insurance, you pay an additional amount of loan you can see why these loans are increasingly popular. Even with the additional costs they represent, you can still save a lot of money by not using the private mortgage insurance premiums each month to pay over the life of the loan.