Is anyone doing a second mortgage to cover themselves above the 80%? We didn't even know this was an option before, but now we think we are going to do it, since we can get a fixed rate on that (and we'd feel more secure that way).
randella
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Re: Second Mortgage v. HELOC
we are doing it-- you avoid the PMI fees as well.
ETA-- I think the PMI fees depend on how much your mortgage is..
Danielle&Scott
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Re: Second Mortgage v. HELOC
We're doing it too. They call it piggy backing.
TracyInQueens
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Re: Second Mortgage v. HELOC
We did it. The PMI would have been about the same as our HELOC, but there are tax advantages to the HELOC. Plus ours is small, we are hoping to have it paid off soon.
cjb88
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Re: Second Mortgage v. HELOC
we are doing it to avoid PMI...
jandt2006
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Re: Second Mortgage v. HELOC
same here, that way we can avoid pmi and then claim everything on our taxes, you can't claim pmi.
NPbride
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Re: Second Mortgage v. HELOC
Posted by jandt2006
same here, that way we can avoid pmi and then claim everything on our taxes, you can't claim pmi.
Same here. It's not that large of an amount and it's a fixed rate.
Blu-ize
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Re: Second Mortgage v. HELOC
We did it when we first took out our mortgage. It was called an 80/10/10. Finance 80% for the 1st mortgage, 10% on a second loan and 10% down. It was the only way to avoid the PMI. Really glad we did it that way. Now I just refinanced and combined the loans.
MCDO15
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Re: Second Mortgage v. HELOC
we were going to do this if we got a house, but since we got a co-op, it was harder to do. agent said pmi is almost the same (tad more) then the 2 mortage anyway... so for us, it really didnt matter
cjb88
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Re: Second Mortgage v. HELOC
for us the PMI would have been less of a payment then the second morgage... but we went with the second morgage anyway because we would rather be putting money toward our morgage amount then pmi, which is just a payment that you dont get back and will never see again...
HearzBellz
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Re: Second Mortgage v. HELOC
Posted by cjb88
we are doing it to avoid PMI...
Ditto, we did as well.
wintergirl06
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Re: Second Mortgage v. HELOC
Thanks for the input, everyone! I appreciate it.
MCDO15
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Re: Second Mortgage v. HELOC
can u do a 2nd mortage on a co-op...? person said that i couldnt do it with the lender they are working with...
LuvMyMichael
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Re: Second Mortgage v. HELOC
we did it too...avoided PMI and made most sense for us.
Blu-ize
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Re: Second Mortgage v. HELOC
Posted by MCDO15
can u do a 2nd mortage on a co-op...? person said that i couldnt do it with the lender they are working with...
I'm not sure about Co-ops and mortgages, but it's worth it to ask. I went through Chase and I can provide you with contact info for my baker if you need. I am really happy so far with my refi-
I went through Wells Fargo when we first bought the house.
PMI doesn't help you build equity, the 2nd mortgage piggy backing on the first will. Also you get the tax deduction on the interest.
DjPiLL
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Re: Second Mortgage v. HELOC
Posted by MCDO15
can u do a 2nd mortage on a co-op...? person said that i couldnt do it with the lender they are working with...
Some lenders are more lenient than others with their LTV allowances on a co-op.
But remember the golden rule that all co-ops have restrictions on how much you MUST put down.
Most co-ops have rules that say you must put between 10-20% down. That superceeds all bank rules.
My co-op requires 15% down... and when I bought my first co-op I got a 15% down loan with Citibank (I paid a little PMI at the time - dumb). So its probably feisable to do an 80/15/5 loan with them.
PMI is an absolute rip-off and should not be paid by anybody.
Blu-ize
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Re: Second Mortgage v. HELOC
Posted by DjPiLL
Posted by MCDO15
can u do a 2nd mortage on a co-op...? person said that i couldnt do it with the lender they are working with...
Some lenders are more lenient than others with their LTV allowances on a co-op.
But remember the golden rule that all co-ops have restrictions on how much you MUST put down.
Most co-ops have rules that say you must put between 10-20% down. That superceeds all bank rules.
My co-op requires 15% down... and when I bought my first co-op I got a 15% down loan with Citibank (I paid a little PMI at the time - dumb). So its probably feisable to do an 80/15/5 loan with them.
PMI is an absolute rip-off and should not be paid by anybody.
