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Is An 80/20 Mortgage Right For You?
This is not true. However, it is more difficult so secure a good mortgage today than five years ago. As with everything else in this country there are literally hundreds of options. Let's take a look at the 80-20 Mortgage. Many of you have heard this term thrown around. What exactly is an 80-20 Mortgage? What is the 80? What is the 20? How will it be possible for my belongings to end up on my lawn in a Christmas time eviction if I sign up for one of these? Basically an 80-20 Mortgage is a method of securing the money to get a loan and avoiding paying private mortgage insurance or PMI. Many of you are familiar with PMI. It's the extra fifty dollars or so tacked onto your mortgage every month that your loan officer swore would go away, but never seems to. Basically and 80-20 Mortgage is two loans. The first for 80% of the amount needed and the second for 20% of the amount needed. The interest rate on the 80% loan is generally lower than the 20% loan. If a person plays their cards right, they can pay of that 20% loan quicker since it is of course less. You can also combine the two loans later on down the road. The beauty of this 80-20 Mortgage thing is that since both loans are incomplete, you don't have to make a down payment before taking advantage of the loan. Wow, this means you can take that down payment money and put it in a mutual fund for your kid to drink up in college later. Securing an 80-20 Mortgage is not a problem if you have good credit, a good employment history and your Debt to Income Ratio is less than 50%. Yes, you guessed it, there are literally thousands of places on line that will be happy to sell you an 80-20 mortgage. With a little online research, you can find one that works for you. Article Directory: http://www.articledashboard.com 80/20 Mortgage
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