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Now, for the good news: We're prequalified under a special state program here in VA ... that lets you do below a %20 down payment with no PMI.

Downside: Higher interest by 1/2%.


Interesting. You may want to watch your step with this one. As ugly as PMI is, it only raises our effective interest rate by about .86%, and it won't be there for the life of the mortgage. There's not a provision to reduce you interest rate by 1/2% when you reach 20% equity, is there? If you're going to stay in the house for a long time you could actually end up losing money on this deal.

SpeleoFool.
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