More Florida Mortgage Home Purchasing Options: If you are looking to purchase a home in Florida, and you are concerned about paying private mortgage insurance or PMI, keep reading.

PMI is usually required when the new home buyer is applying less than a 20% down payment towards the purchase of their new home. Mortgage insurance protects lenders across the United States from losses due to defaults on these conventional first mortgages for residential home properties.

The "Split Mortgage" technique eliminates the requirement of PMI by reducing the first conventional mortgage to a maximum of 80% of the purchase price. And combines it with a second mortgage (or Home Equity Line of Credit) of 5% or 10% of the purchase price.

The "Split Mortgage" technique can also be used to lower your higher first mortgage interest rate associated with Jumbo sized mortgages. You can borrow say $417,000 and combine it with a small$33,000 fixed rate 2nd mortgage. This allows you a total mortgage amount of $450,000 to purchase your $500,000 new Florida home. Otherwise your fixed interest rate would have been based on a Jumbo sized mortgage (higher).

This also saves you thousands of dollars in long-term-interest, since we have shifted the (would-be) PMI payments towards the equity in your home, in the form of a fixed rate 2nd mortgage. And 2nd mortgages are usually amortized for only 15 years, reducing the interest paid and reducing the principal balance faster than a 30 year amortization.

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