Posted on: 06th Apr, 2007 02:28 pm
with my income i cannot make 20% downpayment, i had a talk with one broker and he said that taking a first and second mortgage will be costing less with 10% down and second for 10% and even with a higher rate on the second, it will benefit as interest on second will be deductible where mortgage insurance premium will not be if i take only a first and pay 10% down and take mortgage insurance. does it make sense
Thought about going for an FHA Loan? All you need is 3% down. Now, if you do not have 3% down, FHA also has a Down Payment Assistance Program.
But with FHA, you would need to find out depending on state and county, what the max amount you can borrow.
Hopefully, it is within the amount you need.
But with FHA, you would need to find out depending on state and county, what the max amount you can borrow.
Hopefully, it is within the amount you need.
the loan I require broker said will not be available by fha loan as there is some limit & what house I am looking to get will be more than that
"it will benefit as interest on second will be deductible where mortgage insurance premium will not be"
Broker you contacted is right that tax deductions will be available for the second but few other points are there which you need to check.
Like what rate you get for the second, in comparison to what is offered for the first, if the difference between the two rates is smaller you stand to gain from the combination relative to having a single loan with mortgage insurance.
Broker you contacted is right that tax deductions will be available for the second but few other points are there which you need to check.
Like what rate you get for the second, in comparison to what is offered for the first, if the difference between the two rates is smaller you stand to gain from the combination relative to having a single loan with mortgage insurance.
j eyre
There are many lenders who are also providing 100% financing, you should also contact them if you not in a position to make any downpayment.
There are many lenders who are also providing 100% financing, you should also contact them if you not in a position to make any downpayment.
It all boils down to how many checks you want to write each month for the mortgage payment or mortgage payments.
Write one check, one loan. Two checks, two loans, etc.
That is my philosophy on the subject. PMI is now tax deductible. Also, there are 100% one loans without PMI-lender paid PMI, which you get a higher rate.
Take a look at both rates on both loans and add them together then divide by 2, see what it comes out to as an 'average'. Then take a look at one loan at 100% with no PMI and see how them compare.
You will find your answer between calculations.
Write one check, one loan. Two checks, two loans, etc.
That is my philosophy on the subject. PMI is now tax deductible. Also, there are 100% one loans without PMI-lender paid PMI, which you get a higher rate.
Take a look at both rates on both loans and add them together then divide by 2, see what it comes out to as an 'average'. Then take a look at one loan at 100% with no PMI and see how them compare.
You will find your answer between calculations.
Yes Sharlee, it is entirely up to the borrower to decide whether he will be able to afford a single check payment or more than that. It depends on his overall financial situation actually.
As far as PMI is concerned, well, currently it is tax deductible. But you never know what's likely to happen next year.
However, if a borrower can go for lender-paid PMI, he may have to pay higher interest but if he itemizes the tax deductions, he can claim deduction due to paying the extra interest on account of lender-paid PMI.
As far as PMI is concerned, well, currently it is tax deductible. But you never know what's likely to happen next year.
However, if a borrower can go for lender-paid PMI, he may have to pay higher interest but if he itemizes the tax deductions, he can claim deduction due to paying the extra interest on account of lender-paid PMI.
"with my income I cannot make 20% downpayment, I had a talk with one broker and he said that taking a first and second mortgage will be costing less with 10% down and second for 10% and even with a higher rate on the second, it will benefit as interest on second will be deductible where mortgage insurance premium will not be if I take only a first and pay 10% down and take mortgage insurance. does it make sense"
j eyre, there are some banks which offer no pmi & no downpayment loans, for one I know about cofedbank.com/mortgage/application/zero-down/
You can inquire if they will approve your loan request.
j eyre, there are some banks which offer no pmi & no downpayment loans, for one I know about cofedbank.com/mortgage/application/zero-down/
You can inquire if they will approve your loan request.
100 % Financing is provided by many lenders, u can check with WMC Mortgage with their Core Program u might get eligible in their Maximum CLTV blend