80 20 Mortgage
March 29th, 2008 . by adminThis is an excellent loan for those that are lacking the down payment 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.
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 your loan in this manner will typically keep your interest rates ½% to 2.5% lower than doing a 100% one loan. To learn more about home mortgages, visit Expert Information Online.
