Does anyone have a mortgage loan and a home equity loan?
Valentinegirl
Posted:
Member since
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.
sam
Posted:
Member since
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
Charly
Posted:
Member since
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!
susans
Posted:
Member since
Re: Does anyone have a mortgage loan and a home equity loan?
We did it that way too.
drjenn10
Posted:
Member since
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.
Valentinegirl
Posted:
Member since
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.
peabody
Posted:
Member since
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.
Crisco718
Posted:
Member since
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.
susans
Posted:
Member since
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.
luvsun27
Posted:
Member since
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.
MarciaD
Posted:
Member since
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!
