I was told by my attorney too that my closing costs will be higher since I'm taking out a second mortgage.
Maybe with some banks. But I just heard it from the horse's mouth.
Maybe my credit union is different. With my CU I get all my 800 fees waived... free 90 day rate lock... and they specifically said there are no additional fees to the 2nd mortgage.
Obviously closing costs will be SLIGHTLY higher if you go 80/10/10 because you are paying more mortgage interest. But we are probably only talking hundreds and not thousands.
Blu-ize
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The second mortgage has to have closing fees if it's in NY. The second mortgage has to close like the first. I would be curious to hear what your banker from Chase says.
Having said that, there are new products on the market everyday and they may be able to bury fees and lump them together. I hope that's not the case, then the closing fees on your 1st mortgage are high.
DjPiLL
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Posted by Blu-ize
The second mortgage has to have closing fees if it's in NY. The second mortgage has to close like the first. I would be curious to hear what your banker from Chase says.
Maybe you are forgetting that the 2nd mortgage is actually not a mortgage... its a HELOC.
Chae is offering me a HELOC for my co-op. No closing fees... no charges... no nothing.
What makes this any different than the HELOC for buying a new house as a piggyback?
Blu-ize
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Equity Mortgage and a HELOC are 2 different things. Yes, a HELOC will not have closing fees. A 2nd mortgage or equity mortgage will. IF you are taking a HELOC you will be drawing on it as you need it. A 2nd mortgage is a fixed amount taken at closing.
So, if you want a HELOC then that sounds right.
DjPiLL
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Well I would be taking whatever they give me that gives me an initial 10% down mortgage and additional 10% (equity, mortgage, whatever you want to call it).
I just dont want to pay any fees. If I can get in touch with Chase... i'll find out what they say as well.
DjPiLL
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I think the way they work the piggyback is... you get a mortgage for 10% down... and they immediately do the 10% HELOC to avoid PMI.
Thus.... no closing cost fees.
Blu-ize
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I'm not understanding that. You are doing 100% financing?
DjPiLL
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No... 80% mortgage... 10% liquid funds down payment... then immediately take out a 10% HELOC at closing. Thats usually how a piggyback loan is done. I don't think you pay closing costs on the piggyback part.
Blu-ize
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Are you sure it's a HELOC? I didn't think you could take an Equity line out on the house until it was yours.
violet
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I'm doing 5% HELOC.
raken40
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we put down about 12%
bluesashbride
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We did about the same, 13% down.
DjPiLL
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Blu-ize:
I finally got through to my chase rep. He confirmed... absolutely NO closing costs on the second mortgage/loan. He said quote 'Its a FREE loan'.
So I will be going 80/10/10 since its going to cost me the same in closing costs as it would for a straight up 20% down.
DjPiLL
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And those closing costs numbers I posted above... thats exactly what I will be paying... for BOTH loans.
Pretty good figures IMO. No BS fees.
Blu-ize
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Good for you man. I did an 80/10/10 3 years ago and paid closing costs on both loans, but I did a 2nd mortgage which was a fixed equity line. I couldn't draw on it until I paid some of it back first. I ended up taking it as a deduction anyway.
