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Guest

I am looking for a 80/15/5 mortgage for a home in Texas. The purchase price is 435000. The borrowed amount is 413250. My wife and I have a monthly gross of 12300. We have a $450 car payment and a $700 401K loan. We have about 110000 in liquid assets and about 260000 in 401k. my Fico is 735 and hers is 765. What would be a good rate? And would we qualify as our DTI is 39% on the high end. We can fully document and we have been working for the same company for over 10 years.

evolovik26 · Posted: Wed Nov 28, 2007 8:34 am Post subject:

80/15/5 is possible in your situation but depending on the program and the lender you might be better off with going 95% conforming loan with MI. If everything you saying is correct you should be able to get either loan and its a matter of what you feel is more beneficial for you. You should get a rate in low 6s if you getting a standard 30yr fixed and you can even buydown your rate into high 5s if you wanted to. Depending how the market does this rate may vary. So look for high 5s to low 6s. If you have more questions contact me here or call or email me.

jenkin7 · Posted: Thu Nov 29, 2007 5:48 am Post subject:

Hello Hesser,

I think the 80/15/5 piggyback loan will be better than the 95% ltv. In case of a piggyback loan you don't have to pay the mortgage insurance and this will save money.

Let me explain with an approx calculation:

For 95% ltv loan say interest rate = 6% for 30 years.
Monthly payment = 2478 approx towards principal and interest.
PMI = 269 approx
Total monthly payment = 2747 approx

In case of a piggyback loan,

80% first mortgage loan amount = 348000
Interest rate = 6% approx for 30 years.
Monthly payment = 2087 approx

15% second mortgage loan amount = 65250
Interest rate = 7% approx for 15 years
Monthly payment = 587 approx
Total monthly payment = 2674 approx

So, this implies that if you go for a 95% ltv loan you will be paying around 73 more each month than the piggyback loan.

I just gave you an approx idea as the interest rates will vary. You may calculate the difference with the rates you are offered. You have to shop for lenders in order to get a reasonable rate. You may also try for an FHA piggyback mortgage.

Hope this helps you. Feel free to ask the community if you have any further query.

Posted: Thu Nov 29, 2007 6:17 pm Post subject:

And then there's LPMI for a 1.15 point cost. Weigh that against the cash flow on the 2nd plus the extra cost – closing, recording, etc. Actually in today MORNING market, you’d be looking at 6.00% plus 0.35 points for the LPMI. (market got getter as day progressed) Consider ALL your options.

Ratios shouldn’t be a sweat. Remember the 401K loan doesn’t count on debt service; yes, on reserves.

rick · Posted: Thu Nov 29, 2007 6:22 pm Post subject:

Hi Hesser. Here's a little more info. A good mortgage broker can talk to you about break even points - so there is no one right way for everyone. Having said that, a good wholesale rate today for a 30 year fixed, Conforming amount, is 5.75%. You seem to be an ideal candidate, so you shouldn't have any problem getting that rate - maybe even better.

For the 2nd, I know you can get at least 8.75%, and probably better by having you mortgage broker doing a dedicated search. Unfortunately, not too many lenders go to 95% CLTV, but a few do.

Even using a rate as high as 8.75%, your blended rate is 5.91%, which is excellent. Good luck.

edited per forum rules

Guest

We are buying a $257500 house in Louisville, KY. My credit score is 799, his is 780. We have $7500/mn income, $193.16 student loan and that's it. No car payments, no credit cards. We have approx $30,000 in SIP (depending on the day LOL). We can get a 95%, 30 year fixed at 4.875%, giving us approx $1750 monthly payment including $80 insurance, $200 taxes, and $180 PMI. We will end up paying $15,500 in mortgage insurance. I want to avoid this at all costs. Can I get an 80/15/5 loan?

Guest

I know of no lenders who will do 2nds anymore above 75% CLTV. I only do loans in CA, but my best advice is that you may still get 95% LTV, but you have to pay the M.I. Also, work with a local broker who can make sure you can get 95% taking into consideration declining markets.

Good luck.

Guest

Do the rates on tend to be higher on an 80/15/5 versus a loan that you just finance 80% and put 20% down?

savior70 · Posted: Wed Apr 29, 2009 7:08 am Post subject:

Hi

The rates on a 80% loan with a down payment of 20% will definitely be less than that on a 80/15/5 loan. The reason is that in the 80% loan you're putting down a 20% downpayment which is bound to lower the interest rates on the loan. The more down payment you make, the lower the interest rate you get.

Guest

looking for a jumbo loan with 10% or less down in Louisville. Would like to get as much of loan on 30yr fixed as possible. What is best way to go??
Thanks

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

louisvilleB

If you want to go with lowdoen payment,you can look at FHA loan.

3.5% down with MIP

You need 620 credit score and good source of income and employment histroy fo atleast 2 years

Good luck and feel free to ask

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