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Mortgage & Refinancing Information |
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The Zero Down 80/20 Mortgage
This 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 % 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.
MORE RESOURCES:
Mortgage and refinance rates today, September 29, 2020 | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports Refinancing Your Mortgage Is About to Get More Expensive The Wall Street Journal Mortgage and refinance rates today, September 25, 2020 | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports How to refinance your mortgage without closing costs Fox Business How often can you refinance your mortgage? Fox Business A record number of borrowers can now save on a mortgage refinance, as rates set another historic low CNBC Sovereign Lending Group, Mortgage Refinance Company, Hires Curt Rosequist As They Expand To Texas. globenewswire.com Mortgage and refinance rates today, September 16, 2020 | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports Mortgage lenders are adding the refinancing fee. You can still avoid it if you act now. Bankrate.com Mortgage and refinance rates today, September 15, 2020 | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports Should I refinance my mortgage? A financial planner explains Business Insider The refinancing boom is just getting started HousingWire How and Why to Refinance Your Mortgage: A Step-By-Step Guide Clark.com - Clark Howard When Should I Refinance With a No Closing Cost Mortgage? Clark.com - Clark Howard Historic mortgage rates spark a resurgence of Dayton homebuyers —and a refinancing boom Dayton Business Journal 15-year mortgage rate hits new record low Bankrate.com Smart Money Podcast: The Psychology of Debt, and When to Refinance Waxahachie Daily Light How to Lower Your Monthly Mortgage Payment: Guide Credible News Best ways to pay a large credit card bill Bankrate.com Harambee first sacco to access mortgage refinancing The Star, Kenya 3 Questions to Ask Yourself Before Buying a Home The Motley Fool Buying a Home This Year? 3 Ways to Win a Bidding War The Motley Fool Goldman Sachs Economists Now Anticipate Slower Growth After Giving Up on Coronavirus Stimulus The Motley Fool Mortgage refinance: Everything you need to know Fox Business Seven Out of 10 Homeowners Who Research Refinancing Get Unwanted Sales Pitches: Survey Credible News How to refinance your mortgage Fox Business How to refinance your mortgage in 5 easy steps Fox Business When should you refinance your mortgage? Fox Business How to get the best mortgage refinance rates Fox Business 10 things to know before refinancing your mortgage Fox Business Compare Today's Mortgage Refinance Rates: Sep 29 Credible News How to get a low-cost mortgage refinance Bankrate.com Mortgage refinancing is about to get more expensive Pittsburgh Post-Gazette Mortgage refinancing will be 0.5% more expensive, Fannie Mae and Freddie Mac to raise fees USA TODAY How does mortgage refinancing work? Bankrate.com Refinancing Your Mortgage? Those Rock-Bottom Interest Rates Aren’t for You - The Wall Street Journal Refinancing Your Mortgage? Those Rock-Bottom Interest Rates Aren’t for You The Wall Street Journal Mortgage refinance applications spike 79% as homeowners rush to take advantage of lower rates - CNBC Rushing to Refinance Your Mortgage: 6 Tips and What to Avoid The New York Times Refinancing just got more expensive, thanks to this new fee | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports I refinanced my mortgage during COVID-19, and thanks to low interest rates I'll save about $50000 Business Insider |
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