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Welcome to
Carteret Mortgage!
Your source for consumer information
Option Arm Manage your Mortgage!
Construction/Perm
Interest Only Mortgage
No Doc
Real Estate
Investor
Refinance
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80/10/10 Mortgage
80/10/10 mortgages are also described as combination financing or
piggyback loans and offer a convenient way to
provide creative financing in a purchase, refinance, or debt consolidation
transaction. In an 80/10/10 transaction, a second trust
is frequently used in combination with a first trust to avoid paying Private
Mortgage Insurance or PMI. The
first trust is always set at 80% of your purchase price which eliminates the
need for PMI. We add a second trust of 10% of the purchase price
and you supply 10% cash. You have a wide range of mortgage options on this loan,
including fixed rate or arms. Also,
interest only 80/10/10 mortgage products are
available as well. Several advantages to
consumers using this approach include:
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Your entire payment is tax deductible (mortgage insurance is
not if your income is over $100,000)
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You may decide to pay off your second early reducing your
total payment.
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However, there are some potential problems with the strategy.
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Your second trust or HELOC may include a prepayment penalty - Our programs do not
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Depending on the rate on your second trust or HELOC your total payment may
actually be more than a mortgage with PMI. Send me an email with
your anticipated sales price and I will be happy to run Good Faith Estimates
comparing both approaches for
you.
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Second Trust Ratios A second mortgage or second trust is a loan secured by your property
which takes second position to the first mortgage. A
second trust carries a fixed interest rate for the life of the loan and
amortization periods range from 5 to 20 years with a great new product amortized over 30 years
with a balloon due in 15 years.
The longer amortization period can help to lower your monthly payment significantly. Generally,
your total debt ratio, including the new mortgages, should not exceed 45% of your monthly pretax income.
Depending on credit scores, an interest only
HELOC may also be available to you as wellI have included a page on how to calculate your
80/10/10 mortgage qualification ratios.
I have included a page on documentation
requirements.
Read more about 80/10/10 Mortgage Closing Costs We offer you the ability to qualify and close into several
unique reduced documentation programs which accommodate borrowers with non traditional income,
employment, or asset
situations. Please visit my No Docs
page for additional information on a No Documentation Second Trust.
As a Certified Mortgage
Planning Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
New!
Prequalify for your 80/10/10
Mortgage.
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