Posted by Amy on June 18, 2004 at 14:04:08:
Thank you Jeff for setting me straight. After talking with another mtg co. I was able to get better results. Watch out here I come!!! woooohooooo
Don’t throw me out of the forum for following ? - Posted by Amy
Posted by Amy on June 13, 2004 at 22:04:26:
Does an 80/20 deal mean that I have a 20% 2nd mtg with the seller/owner? Does this happen BEFORE we go to the bank/mtg company. Reason for asking: Current lender said HIS company will not do any 2nd mtgs. I’ve read and read and just can’t seem to get my brain wrapped around this concept. If someone can dummy it down it would be most appreciated.
Amy
Re: Don’t - Posted by jeff
Posted by jeff on June 14, 2004 at 07:12:27:
Yes 80/20 is a 80% first and 20% second. There are many combinations to this with money down 80/15/5 or 80/10/10. This was started to avoid PMI by some lenders. the 20% second does not have to be by the owner, some lenders will do it for you. Check around with other lenders. You will pay more interest on the second, but as long as rent covers both mortgages you should be ok. You will pay closing cost on both loans. If you get a seller second then the terms will be between you and the seller. good luck
jeff