Jumbo loands & 'piggyback' loans....

Gonnacatchapeacock Posted: May 25, 2005 07:00 PM

Jumbo loands & 'piggyback' loans....

Greenpoint was talking to me about a piggyback loan...

the piggyback is an ARM....so it could fluctuate...
but, the bigger portion is at a lower rate (around 0.25% lower).

is it worth it to do this - did you do this?

FTRBRIDE Posted: May 25, 2005 07:55 PM

Re: Jumbo loands & 'piggyback' loans....

You don't have to get a variable rate for your 2nd mortgage, you can get a fixed rate (we are) and the rate isn't high at all. It is worth it if you are putting down less than 20%, b/c the Jumbo loan has higher interest rates and you have to pay PMI, so it adds up. Plus you can't deduct PMI. Why didn't you ask the person you spoke with for pros and cons? We did, and our broker went over every possible type of loan with us for several hours...and the pros and cons of each.