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Dani00518
Gorgeous
Member since 5/05 2730 total posts
Name:
Danielle
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30 year jumbo or 80/10/10
Last summer when we were in contract for a house (things didn't work out) we were doing the 80/10/10 because the payments worked out cheaper. Well now we are looking into a mortgage again and and we were told that it works out cheaper to just do the 30 year jumbo since interest rates are up. Any thoughts on this?
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Posted 8/1/06 12:15 PM  |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: 30 year jumbo or 80/10/10
for the 30 year jumbo, are you putting 20% down?
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| Posted 8/1/06 12:16 PM |
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Dani00518
Gorgeous
Member since 5/05 2730 total posts
Name:
Danielle
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Re: 30 year jumbo or 80/10/10
Posted by Meaghan729
for the 30 year jumbo, are you putting 20% down?
Nope...only 10%....but the mortgage guy said that even with PMI the payments are still cheaper on the jumbo because if we were to do the 80/10/10 the rate on the smaller loan is really high.
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| Posted 8/1/06 12:19 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: 30 year jumbo or 80/10/10
If you're not putting 20% down then you are paying PMI. Most of the time paying PMI is the more expensive option that's why 80/10/10 works out better. You can't deduct PMI, but you can deduct the interest on the 80/10/10 loan.
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| Posted 8/1/06 12:19 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: 30 year jumbo or 80/10/10
Posted by Dani00518
Posted by Meaghan729
for the 30 year jumbo, are you putting 20% down?
Nope...only 10%....but the mortgage guy said that even with PMI the payments are still cheaper on the jumbo because if we were to do the 80/10/10 the rate on the smaller loan is really high.
is he giving you the same rate for a jumbo and regular mortgage??
and remember that the interest on the piggy back loan is tax deductable and PMI is not.
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| Posted 8/1/06 12:21 PM |
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kaklesmay
Love my baby boy!
Member since 9/05 1151 total posts
Name:
Kim
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Re: 30 year jumbo or 80/10/10
But if you plan on being in the house a while, you can eliminate the PMI eventually by getting it reappraised and having 20% equity at that point.
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| Posted 8/1/06 3:11 PM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: 30 year jumbo or 80/10/10
Posted by Meaghan729
Posted by Dani00518
Posted by Meaghan729
for the 30 year jumbo, are you putting 20% down?
Nope...only 10%....but the mortgage guy said that even with PMI the payments are still cheaper on the jumbo because if we were to do the 80/10/10 the rate on the smaller loan is really high.
is he giving you the same rate for a jumbo and regular mortgage??
and remember that the interest on the piggy back loan is tax deductable and PMI is not.
I believe the rate on a jumbo is .25% higher than a conventional mortgage and I think you have to have excellent credit. The rates on home equity loans are rising, so I don't know if that's the perfect solution either, even if the interest is a tax write-off.
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| Posted 8/1/06 3:36 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: 30 year jumbo or 80/10/10
Posted by ODonnell
Posted by Meaghan729
Posted by Dani00518
Posted by Meaghan729
for the 30 year jumbo, are you putting 20% down?
Nope...only 10%....but the mortgage guy said that even with PMI the payments are still cheaper on the jumbo because if we were to do the 80/10/10 the rate on the smaller loan is really high.
is he giving you the same rate for a jumbo and regular mortgage??
and remember that the interest on the piggy back loan is tax deductable and PMI is not.
I believe the rate on a jumbo is .25% higher than a conventional mortgage and I think you have to have excellent credit. The rates on home equity loans are rising, so I don't know if that's the perfect solution either, even if the interest is a tax write-off.
can she fix the rate on the 10% by getting a HE Loan instead of a HELOC???
and you are right, the jumbo's are ususally 10% higher - i didnt know she was putting the 10% down when I asked.
Message edited 8/1/2006 3:51:40 PM.
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| Posted 8/1/06 3:51 PM |
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