80/10/10 Mortgage Loans
80/10/10 mortgage loans are also described as combination financing or
piggyback loans. 80/10/10 mortgage loans offer a convenient way to provide creative financing in a purchase, refinance, or debt consolidation
transaction. In an 80/10/10 mortgage loan 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 or HELOC of 10% of the purchase price
and you supply 10% cash. You have a wide range of mortgage options on these
80/10/10 mortgage loans,
including fixed rate or arms for an
80/10/10 mortgage loans. Also,
interest only 80/10/10 mortgage loans are often
available as well. Email
80/10/10
mortgage loans questions. Several advantages to
consumers using this 80/10/10 mortgage loans approach include::
However, there are some potential problems with the 80/10/10
mortgage loans strategy.
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Your second trust may include a prepayment penalty - Our programs do not
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Depending on the rate on your second your total payment may
actually be more. 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 often lower your monthly payment significantly. Another
option would be an adjustable rate HELOC. As these are generally set up with an
interest only payment, they may lower your overall payment. Generally, your
total debt ratio should not exceed 45% of your monthly pretax income.
Depending on credit scores, an interest only
80/0/10 mortgage loans
HELOC may also be available to you as well
I have included a page on how to calculate your
80/10/10 mortgage loans qualification ratios.
I have included a page on
80/10/10 mortgage documentation
requirements.
Read more about 80/10/10 Mortgage
Loans
Closing Costs I have an article "Buying
your home in 2008" by email explaining negotiating strategy in today's
market.
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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
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