We are pleased to announce that we can now offer our borrowers a Combo mortgage versus a one straight loan with PMI. If you are in the market to purchase a property and only have 10% down payment than our Combo mortgage would be the right choice for you. The Combo program allows us to split your 90% financing into 2 loans, one loan will be at 80% financing and the 2nd mortgage will be for the remaining 10%, totaling 90%, this type of mortgage will eliminate mortgage insurance which is required if putting down payment less than 20%. Please inquire with us if you can qualify for this Combo (piggy back) mortgage.
Even by using the same interest rate in this example below for a straight high-balance at 90% vs conventional, you can discover by breaking it up into a 1st and 2nd lien and thus avoiding the costly, monthly MI, the new payment is significantly lower by nearly $300/mo! Very NICE!
90% LTV with standard MI
LA = $500,000, 740 FICO, O/O
1-family, 30-day lock
30 year fixed agency high-balance at 3.75% = P&I = $2315.58/mo.
Plus Standard monthly MI = .69 = $287.50/mo.
Total = $2315.58 + $287.50 = $2603.08
1st & 2nd combo with NO MI!
1st lien at $415,000 (74.7% LTV)
30 year fixed conventional at 3.75% = P&I = $1921.93
2nd HELOC at $84,000 (89.9% CLTV) at 5.75% interest-only = $402.50
Total = $1921.93 + $402.50 = $2324.43
$2603.08 – $2324.43 = NO MI and a huge monthly savings of -$278.65!
Contact us at (800) 220-LOAN for more information.