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
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.
MORE RESOURCES updated Wed. August / 23 / 2017
How to Get the Best Mortgage Refinance RatesMotley FoolHow can you get the best rates when refinancing your mortgage? Follow these steps to get a good deal on a refinance loan. Christy Bieber. (ChristyB). Mar 25, 2017 at 7:06AM. Homeowners who refinanced a $200,000 mortgage in the first quarter of 2015 ...and more »
RELATED MORTGAGE AND REFINANCING ARTICLES:
How to Find the Best
Home Improvement Loan
If you're looking for the best home improvement loan for
your money it can sometimes seem like an uphill climb. You
may not know whether the offer that you've received is the
best that you can get, or if you should try to find a
better offer elsewhere? but you shouldn't let finding the
best home improvement loan stress you out so badly.
A Guide to Finding the
Cheapest Home Improvement Loan
To find the cheapest home improvement loan that you can,
you need to realize that there are a lot of factors that
can affect the amount that you pay. The equity that you have
in your home or real estate is a major piece, but other
factors that are considered are your credit history,
national and local interest rates, the amount you want to
borrow, and even the types of repairs or improvements that
you're planning on doing with the money.
Home Equity Loan - Not
Just For Home Repairs, And Tax Deductible, Too!
Thanks to the combination of low interest rates and
skyrocketing property values, home equity loans are more
popular than ever. The value of home equity loans taken out
by Americans has doubled in the last two years, and the
market for them shows no signs of slowing down.
Why Get Pre-Approved For
One of the most important steps in the home buying process
is getting Pre-Approved as early as possible.The
Pre-Approval process involves you speaking with a Mortgage
Lender about your financial situation, what you'd like to
accomplish, and any concerns you have.
Bad Credit? Qualify
Yourself For A Zero Down Mortgage Loan
I decided to write this article today after closing a home
purchase loan for a couple that had some major credit
issues. They got into the house with ZERO down payment, and
only had to bring $600 for the closing costs.
How Good a Deal Is Your
Banks Mortgage Insurance Plan?
When you go to the bank to get a mortgage, you'll
inevitably be asked to take out mortgage insurance. The
idea behind mortgage insurance is simply that if something
happens to you or your spouse then your loan will be paid
off which is good news for your family and the bank.
Total Cost Of Credit vs
I read a press release the other day which points
to the fact we need to be very careful with our finances.
The subject of the release was home mortgages.
Find the Best Mortgage
If you do not wish to commit to living in one place for at
least a few years, then owning a house is probably not for
you, at least not yet. With the transaction costs of buying
and selling a home, you may end up losing money if you sell
Refinancing Your House -
How to Know Whether to Refinance or get a Second
Refinancing your house's mortgage is not the same thing as
getting a second mortgage. While both allow you to cash out
your home's equity, terms and rates differ between the two
types of loans.
What Are Home Equity
A home equity loan is simply borrowing on the difference of
the value of your home and the outstanding mortgage on the
house. Lets say, you have bought a home worth $50,000 some
time back, after making a down payment of $5,000.
Applying for a Home
Mortgage Loan Online - The Pros and Cons
If you have considered applying for a home loan mortgage
online, there are a few pros and cons to think about with
getting a home mortgage loan online:Pros:1. The process of
applying for an online home mortgage loan is very simple,
unlike some lenders who operate in the 'real' world and ask
for heaps of information.
A Simple Way to Save
Thousands on Your Mortgage Charges
How many times do you check you restaurant bill? If not
often, I would advise you to do it more, especially when
dining on your overseas vacations. Still, much more
Americans check their restaurants bill, than the number of
homebuyers, who check the charges for their mortgages.
Mortgage Elimination- A
Horrible and Sure Way to Lose Your Home to
"Own your home free and clear in 3 to 4 months. Note paid
in full!" How does this statement sound to you? Does it
bring out a sentiment of grand larceny or does it peek your
interest as a means to quickly and legally increase your
personal net worth? Would it be moral to cancel a debt you
made in such an easy and unfathomable manner? Most
importantly, if you were behind on your mortgage would you
pay someone $3,000 to perform this elimination service for
you? Unfortunately, the answer for many homeowners is "Yes".
Home Loan Confusion
Unfortunately, most Americans still do not understand how
home loans work and how to take advantage of the wide array
of programs available. The way I see it, people are still
confused about mortgages in general and real estate
finance, in particular.
Buying a Home With Bad
Credit - Why a Recent Bankruptcy Will Not Stop You From
Buying a home with bad credit is possible with the help of
a subprime lender even if you have a recent bankruptcy or
foreclosure. These mortgage lenders specialize in financing
home loans for people with poor credit.
5 Things In Selecting
The Best Mortgage - You Should Know
Your goal is not only to find the best rates and programs,
by searching through a huge number of lenders products, and
save yourself thousands of dollars on mortgage payments
every year, but also, to save time and hassle by
simplifying the loan process and reducing the paperwork.
Here are some things you can keep in mind when selecting a
Interest Only Home Loan
- Is It Right For You?
There are many benefits to interest-only mortgage loans.
There are many situations where an interest-only mortgage
loan could be best for you.
Home Equity Loan - A
Reverse Mortgage Could Provide a Comfortable
While only comprising about 1% of all mortgages, the
reverse mortgage has gained in popularity in recent years.
Federally insured since the late 1980's, the reverse
mortgage allows owners of paid-off homes to borrow against
the equity in their homes in the form of a lump sum, a line
of credit, or in the form of monthly payments.
You're selling your home and are looking to relocate to the
Carolinas. While researching homes in your new community
you discover that you do not know of any mortgage lenders
in the area.
Home Loans and Mortgages
- The Selection Can Be Bewildering
For years, when someone wanted to purchase or refinance a
home, the choices were simple. The buyer chose either a
15-year fixed-rate mortgage or a 30 year fixed-rate
used office furnishings-supplies-equipment-desks-cubicles-service-counters for
sale in Akron Ohio
Die cast model cars for sale in Akron Ohio
used cars for sale in Akron Ohio
unfurnished homes for
rent in Akron Ohio
ARM compare rates find the best rates current in your area lenders read reviews calculator adjustable rate loan home lenders brokers
quotes florida houston gmac washington interest only 2nd software debt consolidation
reverse senior equity texas maryland options lending bad credit
option one ameriquest chase first banks emc residential california miami dallas est branch marketing
home company commercial yahoo online bad credit low credit no credit