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Valentinegirl
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Member since 7/03 7278 total posts
Wedding Date:
11/14/2010 12:00 AM
Wed. Location:
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Does anyone have a mortgage loan and a home equity loan?
We were offered this where we dont pay PMI. Is this a good way to go? It confused me a bit.
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Posted 3/28/04 11:54 AM 
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sam
Board Enthusiast
Member since 8/01 248 total posts
Wedding Date:
7/14/2001 12:00 AM
Wed. Location:
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Re: Does anyone have a mortgage loan and a home equity loan?
We do! It's called a piggy back loan or also known as 80/10/10 or 80/15/5.
We just have 2 loans for the house. It saved us from PMI and we also got a lower interest rate because we didn't cross jumbo lines like we would have if we have lumped it all into one loan. We just make 2 payments- to 2 different companies. Big mortgage due on the first of the month, little mortgage due on the 15th. It's not as complicated as it might seem...
Good luck 
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Posted 3/28/04 12:53 PM
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Charly
Where has the time gone?
Member since 10/03 1801 total posts
Wedding Date:
11/7/2004 2:00 PM
Wed. Location:
WM
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Re: Does anyone have a mortgage loan and a home equity loan?
Samer here! We did the 80/15/5 to avoid PMI. If you have any questions let me know!
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Posted 3/28/04 3:42 PM
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susans
"I'm Addicted"
Member since 12/01 1733 total posts
Wedding Date:
1/25/2003
Wed. Location:
Harrison House/Glen Cove
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Re: Does anyone have a mortgage loan and a home equity loan?
We did it that way too.
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Posted 3/28/04 4:46 PM
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drjenn10
Board Fanatic
Member since 6/02 792 total posts
Wedding Date:
Jun 8 2003
Wed. Location:
North Ritz Club
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Re: Does anyone have a mortgage loan and a home equity loan?
I also did it that way to avoid both PMI and a jumbo mortgage interest rate.
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Posted 3/28/04 5:26 PM
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Valentinegirl
*~*~*~*~*~*~*~*
Member since 7/03 7278 total posts
Wedding Date:
11/14/2010 12:00 AM
Wed. Location:
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Re: Does anyone have a mortgage loan and a home equity loan?
Thanks. Do you pay a big payment towards the equity loan? He said to pay the interest and whatever extra you want.
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Posted 3/28/04 7:47 PM
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peabody
LET'S DO IT AGAIN!!!
Member since 7/03 3195 total posts
Wedding Date:
10/1/2004 4:00 PM
Wed. Location:
Timber Point Country Club in Great River
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Re: Does anyone have a mortgage loan and a home equity loan?
We do! Make sure you work out a budget that pays towards the principal for the home equity loan or line of credit. not just the interest.
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Posted 3/29/04 12:11 AM
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Crisco718
Board Fanatic
Member since 5/02 669 total posts
Wedding Date:
3/15/2003
Wed. Location:
Chateau Briand
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Re: Does anyone have a mortgage loan and a home equity loan?
We also have an 80/10/10. I think this is the better option, because at least the interest is tax deductible. If you have to pay PMI, that is just money out the door.
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Posted 3/29/04 7:20 AM
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susans
"I'm Addicted"
Member since 12/01 1733 total posts
Wedding Date:
1/25/2003
Wed. Location:
Harrison House/Glen Cove
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Re: Does anyone have a mortgage loan and a home equity loan?
The payment on the home equity loan isn't that big compared to the mortgage payment, but we always pay about $500 more so that it gets paid off sooner.
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Posted 3/29/04 1:34 PM
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luvsun27
"I'm Addicted"
Member since 9/03 2887 total posts
Wedding Date:
4/17/2004 12:00 PM
Wed. Location:
The Beach Club Estate on Lake Ronkonkoma
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Re: Does anyone have a mortgage loan and a home equity loan?
IF you decide to go this route...you HAVE to pay more to the home equity loan...do not just make the minimum payment. If you do...you will only be paying the interest and you will never pay down the principle. For example...if your home equity portion has a minimum payment of $100, you should try to pay at least $600 or $700 a month to that part of the loan. Also...as you pay down that loan...you can borrow money against it as you gain equity in your home for improvements and such. Good luck.
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Posted 3/29/04 8:21 PM
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MarciaD
Happy Wife
Member since 5/03 1707 total posts
Wedding Date:
11/1/2003 12:00 PM
Wed. Location:
Freeport, NY
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Re: Does anyone have a mortgage loan and a home equity loan?
We did this and LOVED it. The PMI is a waste of money and the equity line is a great way to go. We paid it off really quick, because the interest was higher than our 1st mortgage. But the cool thing is that you can use it as a type of savings account to draw from for any reason and the interest is tax deductible, very cool!
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Posted 3/31/04 3:24 PM
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