If you are searching for the meaning of 80-10-10 in real estate and also a definition of 80-10-10, then this blog post is helpful for you
What is the meaning of 80-10-10 in real estate?
A type of blended mortgage loan which avoids private mortgage insurance (PMI). It consists of an
80% - 30-year first lien at market rates, a 10% - 15-year second lien at a slightly higher interest
rate, and a 10% down payment. Instead of having to come up with a 20% down payment, a buyer
is able to avoid PMI with only 10% down. While the interest rate on the second note is a bit
higher, the total monthly payment is usually lower than a 90% mortgage with PMI. In addition,
the extra interest paid for the second lien is tax-deductible, whereas PMI is not. It is also possible
to payoff just the second lien, thereby lowering the future monthly payments. Some lenders also
offer 75-15-10 and 80-15-5 programs. This type of mortgage also gives the consumer the option of
having a non-escrowing loan without a 20% down payment.
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