![]() |
The Zero Down 80/20 MortgageThis is an excellent loan for those that are lacking the down payment required for other types of mortgages. The 80 20 mortgage is simply two loans for 100% of the purchase price. It is a first mortgage at 80% of the purchase price with a 20% second mortgage. If you are a conforming borrower, doing your loan in this manner will save you from having to pay mortgage insurance. Mortgage insurance is almost always required when you have less than 20% down. But with the 80 20 loan you avoid this necessary evil. If you are a sub-prime borrower, doing you loan in this manner will typically keep your interest rates ½% to 2.5% lower than doing a 100% one loan. A 100% one loan is simply one loan for the entire purchase price. Many times you will have two choices when it comes to the second mortgage portion of the 80 20 mortgage. The second mortgage can either be a fixed second mortgage or it can be a line of credit. If it is a fixed second mortgage. The interest rate is fixed for the entire length of the mortgage. Most fixed second mortgages are a 30 due in 15. Meaning that the second mortgage is amortized over 30 years, but is due in 15 years. Basically it is a balloon payment. Don't let this scare you. Statistically people refinance or sell their home every 7 to 9 years any ways. If it is a line of credit as the second mortgage. The interest rate will fluctuate as the Federal Reserve adjusts the prime interest rate up or down. The benefit of going with the line of credit as the second mortgage is that the interest rate is normally much lower than the fixed second mortgages rate. It can be 2% to 5% lower. If you are considering doing the 80 20 loan have your loan officer compare the two different options if you have both available to you. You may also want to consider an 80 20 interest only loan. The interest only loan could save you hundreds of dollars in mortgage payments every month. This can help you purchase a more expensive home or keep the payments down on the home you want to buy. About The Author Matthew Allen is a mortgage consutlant with Action Brokerage Services, Inc. in Medford Oregon. He is also the author of "How To Buy A Home With Zero Down, Even If You Have Damaged Or No Credit" You can visit his website at http://www.realmortgageadvice.com.
CFPB Mortgage Report Finds Jumps in Closing Costs and Denials ... Consumer Financial Protection Bureau Buy Now, Refi Later? 84% of Recent Homebuyers Are Banking on It U.S News & World Report Money Can You Roll Closing Costs Into Your Mortgage? GOBankingRates How to Get a Pool Loan Investopedia Why Now Is a Horrible Time to Refinance Student Loans The Wall Street Journal What's the cost of refinancing a mortgage? Mortgage Professional VA loan refinance: What is it and how does it work? Yahoo Finance Can I Refinance a Car Loan With a Cosigner? Car and Driver What does government shutdown affect in NJ? NorthJersey.com MBA: Mortgage Applications Decreased in Weekly Survey Calculated Risk The Great Pandemic Mortgage Refinance Boom - Liberty Street ... Liberty Street Economics - Refinancing your mortgage could save you thousands — here are some of the best refinance lenders CNBC Today's 30-Year Mortgage Refinance Rates U.S News & World Report Money 11 Home Refinance Loans For Bad Credit (Sep. 2023) BadCredit.org Should You Refinance Your Home Loan? Credible Current mortgage refinance rates in 2023 USA TODAY Compare Today’s Refinance Rates U.S News & World Report Money Should I Refinance My Mortgage? - Buy Side from WSJ The Wall Street Journal Here’s how sharply mortgage refinancing has dropped off Yahoo Finance 15-Year Mortgage Refinance Rates: Compare Current Rates Business Insider Mortgage Refinance Rates SFGATE 30-Year Refinance Rates: Compare Current Mortgage Rates Business Insider Mortgage Rate Forecast: When Will Rates Go Down? U.S News & World Report Money Mortgage and refinance rates today, Jul. 3, 2023 The Mortgage Reports Should you refinance your mortgage to pay off debt? New York Post Why Older People Can’t Get New Mortgages The New York Times What Credit Score Is Needed To Refinance a House | Chase Chase News & Stories What Happens After You Refinance a Car Loan? Investopedia Should I refinance my student loans? MarketWatch We Refinanced Our House a Year After Buying It for Long-Term ... Business Insider The Age Gap in Mortgage Access Federal Reserve Bank of Philadelphia How to Refinance Student Loans in 5 Easy Steps LendingTree How to Refinance a Car Loan in 2023 Investopedia How to Tap the Value of Your Home—Safely Consumer Reports Home-Mortgage Lending Across U.S. Falls To More Than 20-Year ... ATTOM Data Solutions Mortgage and refinance rates today, Jul. 13, 2023 The Mortgage Reports
|