No MI loans are typically preferable on higher LTV deals because the premiums jump as the LTV closes in on 100%.  The cost of the insurance exceeds the additional payment that would be experienced from the higher interest rate that is characteristic of 2nd mortgages.  Therefore, in such cases, the no MI option is finacially prudent.  However, as the LTV gets closer to 80%, the cost of the MI is lower, and often a borrower is actually better off with the mortgage insurance instead of the higher interest 2nd

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