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Many home buyers find it difficult to provide the required 20% down payment and are forced to pay private mortgage insurance, or PMI, in order to buy a home. Private mortgage insurance solves the down payment problem but creates another two: it increases monthly payments and on top of that it is not tax deductible. Fortunately, there is more than one way to get your desired home without having the 20% down payment and avoid PMI at the same time.

Terminating PMI When You Already Have One
The use of private mortgage insurance has been a great way to make it possible for a borrower to buy a home with as little as 3-5 % down payment and give the lender insurance in case the borrower defaults on the home loan. However since PMI payments can be significant, the borrower starts to ask himself/herself how to get rid of those payments.

The Homeowner's Protection Act includes rules for automatic suspension of PMI payments and cancellation of PMI when 22% equity in the borrower's home is reached. Those rules apply to mortgages signed on or after July 29, 1999, and exclude government-insured FHA or VA mortgages that are considered high-risk to default.

Additionally, disregarding the time when the mortgage was signed, the borrower may ask for PMI termination once s/he exceeds 20% equity.

Avoiding Private Mortgage Insurance via a Piggyback Loan
Piggyback loans are a very popular way of avoiding private mortgage insurance. It consists of taking a loan (first mortgage) covering 80% of the sale price of the home and taking and placing additional 5%, 10% or 15% on a second mortgage. A combination of 80% first mortgage, 5% second mortgage and 15% down payment is referred to as 80/5/15. Accordingly, the other two loan combinations are 80/10/10 and 80/15/5.

Although second mortgages generally have higher rates, in the end the borrower may save money because in contrast to PMI payments, now the loan payments are tax deductible.

Choosing a Finance Single Premium Option over Private Mortgage Insurance
Since an increasing number of borrowers are turning to piggyback loans in order to avoid PMI, the mortgage insurance industry came up with this solution claiming that it lowers monthly mortgage payments to the same or lower level as a piggyback loan. With this option homebuyers pay a single premium on their insurance and it is amortized over the term of loan.

One of the pitfalls of this solution is that few lenders offer this option, since Fannie Mae and Freddie Mac do not work with this kind of PMI structure.

Finding a Loan with No Private Mortgage Insurance
Loans with no PMI have one great disadvantage - they typically have higher interest rates. Instead of paying regular PMI, the latter is included in the higher rate of the mortgage.

Which of the above solutions will be best for you depends entirely on your particular case. Sometimes paying the private mortgage insurance might turn out more beneficial than choosing to avoid it with a second mortgage. Therefore you should consider your decision carefully and make all the necessary calculations in order to make the right choice.

Jim Cramer is an expert who shares his knowledge and years of experience in the mortgage field providing hundreds of Mortgage Questions and Mortgage Answers dedicated to help home buyers. Learn more about Home Mortgage Insurance

How about a five star golf holiday package at The Dromoland Castle! The castle is the one of most impressive castle hotels in Ireland. Welcome to Dromoland and welcome to golfing with a royal touch.

The Dromoland Castle Golf Club was founded in 1962 and was heavily redesigned in 2003 by the Joe Carr and the late Irish legend Ron Kirby. The Dromoland Castle can easily claim to be one of Europe's finest country estates with its own golf course. With the regal Dromoland Castle as a backdrop, the par 72 parkland golf course stretches over 6845 yards. The new look golf course befits the Castle's regal air and sweeps around 375 acres of woodland, open pasture, streams and lakes. The course takes you on a great golf tour through well maintained groves of oak, beech and pine trees as well as through Marshes and the River Rine. The designers have taken care to test the golfers through difficult drives at the 11th, 14th and 18th. Golfers have to negotiate the marsh and water poses steep difficulties at the 16th and 17th. Golfers will indeed take back happy memories of the regal castle and the serene silken grass with its pleasing curves.

The Dromoland Castle is ideal for a great golf holiday package. It offers Golf training, Fishing, Tennis, Cycling, Clay Shooting, Archery, Horse riding, and a well equipped Spa for relaxation all which can be a part of your golf holiday package in the wonderful land of Ireland.

Golf- Introduce your better half to golf at the Dromoland Golf Academy just near the Castle's main entrance. It has an enclosed teaching bay as well as 10 fully automated Driving Bays, Putting Greens and bunker. The Driving Bays are fitted with fully automated power tees while the bunker offers a number of lies and slopes for practice.

Horse riding -In addition to Golf lessons, the family can explore the vast castle grounds on foot or horseback. For first time riders, horse riding lessons are also available at the Castle.

Cycling, Clay Shooting and Archery- the Castle offers mountain bikes for biking enthusiasts who wish to explore the extensive estate grounds on a bike. Shooting enthusiasts are welcome to the dedicated clay shooting range at the estate. Guests may also enjoy archery sessions at the Castle archery facilities.

Fishing -The Dromoland Lake is splendid for boating and fishing. Visitors and guest may fish from the banks of the lake or one of the boats. The Lake is stocked with many varieties of fish including trout and perch. Expert advice for fishing too is available. Indeed fishing and boating on the Dromoland Lake are the most popular activities , i bet you can't wait to go on a golf holiday package there.

Spa facilities - For those who would simply like to relax from worldly cares as part of the golf holiday package, the Leisure Centre at the Golf & Country Club offers a 17 meter indoor swimming pool, with Sauna, Steam room, Jacuzzi and even a fully equipped Gymnasium. The castle Spa opened its doors in June 2007 has already made a name for itself. It offers the ultimate spa experience and also includes an outdoor Gazebo with Hydro Pool.

Restaurants

If you chose to live the regal life during your golf holiday package, come and enjoy a fine dining experience at the two restaurants close by the Earl of Thomond and the Fig Tree.

Accommodation

The best place to stay during your golf holiday package is of course the majestic Dromoland Castle. Other options include the Adare Manor, the Vaughan Lodge and the Moy House all within 45 minutes of the Course.

How to approach

The Dromoland Castle is situated on main N18 route from limerick to Ennis and is about 17 miles North West of Limerick City.

Anireju Atie is a prolific writer and the author of a various golf articles, for golf ebooks, golf auctions, golf books and golf videos visit http://golfexplored.com