80/20 Home Mortgage Loans - Creative Financing For Your Mortgage Loan

An 80/20 mortgage loan is where, for a new home loan, there are two separate loans with two separate payments. There are also two separate interest rates and loans are usually funded by separate companies. The two loans made up 80% of the loan and 20% of the loan. An 80/20 mortgage loan is a great option for people who do not have enough to pay for the purchase of their new home. Some of the advantages to having a 80/20 mortgage loan are: 1. N. PMI - Private mortgage insurance is a monthly payment that each borrower must pay when buying a house with less than 20% down. PMI is insurance for the lender to protect the lender against loss if the borrower default on their loan. PMI does not ensure the borrower in any way. When you split your mortgage into two loans, a loan is for 80% of the loan and the other is for 20% of the loan. Thus, SMEs, it is not necessary for the first mortgage. 2. Receive 100% funding a loan - Many times a borrower may not be able to qualify for 100% financing their mortgage unless you do the setup 80/20 with their loans. 3. Lower mortgage interest rate 1 - Let's say that you expect to be able to pay down a significant amount on the mortgage loan in the near future. It works in your best interest to get a mortgage, 80/20, because as you pay off your mortgage quickly and secondly, the interest rate on the first mortgage will be much less than if all had financed 100% of the loan through a company. Usually the interest rate on second mortgages is much higher, but if you cancel the second mortgage is paid off quickly. There are many ways to use creative financing to fund a loan without payment. Try to consult with more than one broker to find that all options are before deciding.