X-No-Archive: yes

Which solution would be more appealing on these two mortgages?

Option 1:
Take a loan for 95% at 180,500 @ 5.75 and PMI of $117.33 per month.

Option 2:
80/15/5
Finance 80% or $152,000 at 5.75% and the other 15% ($28,000) at 7% fixed and
ammortized over fifteen years. No PMI

(Also, should I get a fixed rate on the 15% loan or a Home Equity line of
credit?)

I thought some people on here might know ;)

Regards

Some quick calculations:

On a 95% Loan to Value at 5.75% your principal
& intrest payment would be $973.62 for 360 payments totaling $350,503.20.
Add in 111 payments of PMI at 117.33 and you have $13,023.63. For a total
cost over 30 years for the debt of $363,526.83 .

On your other loans you have the first borrowing $152,000 at 5.75.
P&I payment would be $887.03 for 360 payments totaling $319,331.07.
The second loans P&I would be $186.28 for 180 payments totaling
$33,531.25. Together these two loans total $352,862.31.

The second is tax deductible and cost $10664.52 less over the life of the
loan.

HOWEVER I wouldnt do either. I would try very hard to do a 15 year loan.
Even if it means getting less house. You will save yourself a ton of money
over
the last 15 years and usually get a better rate. You can then bank 15 years
of
payments toward of very nice retirement...

Just my $.02 as to what I would do....



"richard flores" <12thst@bellsouth.net> wrote in message
news:nn%hb.3297$JE4.2627@bignews4.bellsouth.net... X-No-Archive: yes Which solution would be more appealing on these two mortgages? Option 1: Take a loan for 95% at 180,500 @ 5.75 and PMI of $117.33 per month. Option 2: 80/15/5 Finance 80% or $152,000 at 5.75% and the other 15% ($28,000) at 7% fixed
and ammortized over fifteen years. No PMI (Also, should I get a fixed rate on the 15% loan or a Home Equity line of credit?) I thought some people on here might know ;) Regards

Nice Tip, thanks

"John Smith" <someone@doe.com> wrote in message
news:319726306911847fd7823c1e56c562d4@news.teranew s.com... Some quick calculations: On a 95% Loan to Value at 5.75% your principal & intrest payment would be $973.62 for 360 payments totaling $350,503.20. Add in 111 payments of PMI at 117.33 and you have $13,023.63. For a total cost over 30 years for the debt of $363,526.83 . On your other loans you have the first borrowing $152,000 at 5.75. P&I payment would be $887.03 for 360 payments totaling $319,331.07. The second loans P&I would be $186.28 for 180 payments totaling $33,531.25. Together these two loans total $352,862.31. The second is tax deductible and cost $10664.52 less over the life of the loan. HOWEVER I wouldnt do either. I would try very hard to do a 15 year loan. Even if it means getting less house. You will save yourself a ton of
money over the last 15 years and usually get a better rate. You can then bank 15
years of payments toward of very nice retirement... Just my $.02 as to what I would do.... "richard flores" <12thst@bellsouth.net> wrote in message news:nn%hb.3297$JE4.2627@bignews4.bellsouth.net... X-No-Archive: yes Which solution would be more appealing on these two mortgages? Option 1: Take a loan for 95% at 180,500 @ 5.75 and PMI of $117.33 per month. Option 2: 80/15/5 Finance 80% or $152,000 at 5.75% and the other 15% ($28,000) at 7% fixed and ammortized over fifteen years. No PMI (Also, should I get a fixed rate on the 15% loan or a Home Equity line
of credit?) I thought some people on here might know ;) Regards

On the second loan for 15% should I get a fixed rate on or a Home Equity
line of
credit?

Thanks

"John Smith" <someone@doe.com> wrote in message
news:319726306911847fd7823c1e56c562d4@news.teranew s.com... Some quick calculations: On a 95% Loan to Value at 5.75% your principal & intrest payment would be $973.62 for 360 payments totaling $350,503.20. Add in 111 payments of PMI at 117.33 and you have $13,023.63. For a total cost over 30 years for the debt of $363,526.83 . On your other loans you have the first borrowing $152,000 at 5.75. P&I payment would be $887.03 for 360 payments totaling $319,331.07. The second loans P&I would be $186.28 for 180 payments totaling $33,531.25. Together these two loans total $352,862.31. The second is tax deductible and cost $10664.52 less over the life of the loan. HOWEVER I wouldnt do either. I would try very hard to do a 15 year loan. Even if it means getting less house. You will save yourself a ton of
money over the last 15 years and usually get a better rate. You can then bank 15
years of payments toward of very nice retirement... Just my $.02 as to what I would do.... "richard flores" <12thst@bellsouth.net> wrote in message news:nn%hb.3297$JE4.2627@bignews4.bellsouth.net... X-No-Archive: yes Which solution would be more appealing on these two mortgages? Option 1: Take a loan for 95% at 180,500 @ 5.75 and PMI of $117.33 per month. Option 2: 80/15/5 Finance 80% or $152,000 at 5.75% and the other 15% ($28,000) at 7% fixed and ammortized over fifteen years. No PMI (Also, should I get a fixed rate on the 15% loan or a Home Equity line
of credit?) I thought some people on here might know ;) Regards

Be careful of junk fees. Went through the process about two years
ago, and got sucker punched with junk fees on the 15% loan. The
closing attorney & and loan underwriter hit me twice for some fees,
because I had two loans.

I also, got punched with a higher interest rate on the 15%, because
they said my lock was for the 80% and the 15% could not be locked. I
think also, I maybe paid .25% higher interest on my 80% loan, because
of the added risk.

Would I do it again, no. It's not worth it, unless you see a wind
fall coming your way to pay off the 15% loan.

Also, I think your credit takes a little ding, with having a second
mortgage on your house (fico score may go down 20-50 points). Shop
the lowest rate 30 year fixed, don't let tax deductions lead in your
decision.