Some quick calculations: On a 95% Loan to Value at 5.75% your principal & intrest payment would be $973.62 for 360 payments totaling $350,503.20. Add in 111 payments of PMI at 117.33 and you have $13,023.63. For a total cost over 30 years for the debt of $363,526.83 . On your other loans you have the first borrowing $152,000 at 5.75. P&I payment would be $887.03 for 360 payments totaling $319,331.07. The second loans P&I would be $186.28 for 180 payments totaling $33,531.25. Together these two loans total $352,862.31. The second is tax deductible and cost $10664.52 less over the life of the loan. HOWEVER I wouldnt do either. I would try very hard to do a 15 year loan. Even if it means getting less house. You will save yourself a ton of money over the last 15 years and usually get a better rate. You can then bank 15 years of payments toward of very nice retirement... Just my $.02 as to what I would do....
Be careful of junk fees. Went through the process about two years ago, and got sucker punched with junk fees on the 15% loan. The closing attorney & and loan underwriter hit me twice for some fees, because I had two loans. I also, got punched with a higher interest rate on the 15%, because they said my lock was for the 80% and the 15% could not be locked. I think also, I maybe paid .25% higher interest on my 80% loan, because of the added risk. Would I do it again, no. It's not worth it, unless you see a wind fall coming your way to pay off the 15% loan. Also, I think your credit takes a little ding, with having a second mortgage on your house (fico score may go down 20-50 points). Shop the lowest rate 30 year fixed, don't let tax deductions lead in your decision.
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