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Company Loan Type APR Est. Pmt.

80-20 loan or 80-10-10 loan

Posted on: 26th Nov, 2005 01:53 am
My lender has suggested me to take an 80-20 mortgage loan. But I have heard about 80-10-10 loan also. What I want to know is, are there any difference between the two loans and is there any of advantages of 80-20 loan.
Hi Ethan,

there are some diffrences between 80-20 mortgage loan and 80-10-10 mortgage loan. like you dont have to pay down payment in 80-20 loan and you also not have to pay PMI. but in 80-10-10 mortgage loan you need not pay PMI but you will have to pay down payment.

thanks,
jill
Posted on: 26th Nov, 2005 02:06 am
Hi,

Its good to see you back.

"is there any of advantages of 80-20 loan."
There are lot of advantages of 80-20 mortgage.
  • You do not have to pay down payment if you opt for 80-20 mortgage loan.
  • Monthly payment for 80-20 mortgage loan are often tax deductible.
  • If you opt for 80-20 mortgage loan you need not pay mortgage insurance.


For more information on 80-20 mortgage loan and 80-10-10 mortgage loan please refer the respective section

Thanks,
Jerry
Posted on: 26th Nov, 2005 02:20 am
Iam still undecided is I should get a 80-20 mortgage loan. I feel like there is a catch to this program at the long run
Posted on: 11th Oct, 2006 12:25 pm
Hi,

One thing that is important is that if you get the two mortgages from two different lenders then you will have to bear two separate closings costs. Also the interest on the second mortgage will be somewhat higher.

Thanks
Posted on: 11th Oct, 2006 12:49 pm
Hi laura,

If you think that you can carry on with a higher interest rate and you have cash enough to make regular monthly payments and pay off the loans, they only you should opt for the 80-20 loan.

Thanks,

Sara.
Posted on: 11th Oct, 2006 10:48 pm
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