Blended Rate Calculator

A common question is why do a 80/20 loan when you can do just one loan and only have one payment. The common answer is you don’t have to pay mortgage insurance on a 80/20 loan and the 2nd loan payment is also tax deductible. Lenders are now offering lender paid Mortgage Insurance. Under this program your rate increases a bit but you get one loan. However, I’ve found that the blended rate on a 80/20 loan is oftentimes better to even compared to a lender paid MI loan. See for yourself. Here is a link to a blended rate calculator.

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