2013 80 20 MORTGAGE

An 80 20 mortgage loan is also referred to as a zero or no money down loan later. There is actually two loans, mortgage home regular home accounts for 80% of the price of the house and a second mortgage or loan capital consisting of 20% of the cost. The idea behind this type of loan is to avoid mortgage insurance (PMI) since the net worth of mortgage payment.

- No cost refinance

Almost all mortgages require a form of mortgage insurance, if you are unable to doA deposit of at least 20 percent. By acquiring a second mortgage or home equity loan for 20 percent of the costs you can get around this requirement, the second property loans as a deposit.

There are variations on this type of loan, a loan 80-15-5. This means that the borrower was a big mortgage to 80 percent of the purchase price of the house, a mortgage on his back 15 percent, and made a 5 percent down payment. This can be a good option if you have somethingThe money for a down payment, but not enough to cover the entire 20%.

- No cost refinance

The second mortgage may be a second or a fixed mortgage may be a line of credit. If there is a fixed second mortgage so the interest rate is usually fixed for the duration of the loan. Most mortgages are fixed rate second half from 30 to 15 that the second mortgage is amortized over 30 years, but is payable in 15 years.

The advantage of going with the credit line as a second mortgage is that interestis usually much lower than the second mortgage interest rate fixed. You can also use an interest only loan can save you hundreds of dollars in mortgage payments every month.

The 80 percent first mortgage can be a fixed interest rate (15 years or 30 years), with variable interest rate (typically 1.5, 1.7 or 10/1fixed period ARM) or interest-free loan only. Normally, the interest rate for mortgage loans second highest rate for the first loan. But because the borrower has to payMortgage insurance that cost less than a traditional mortgage, the mortgage interest rate higher for the second loan.

READ MORE http://www.nocostrefinance.goodarticlesite.com/avoiding-a-mortgage-80-20-mortgage-insurance/

(PRWEB) March 15, 2013

According to SNL Financial’s analysis, the pro forma ranking of the largest 50 banks and thrifts in the U.S. for the fourth quarter of 2013 saw little movement at the top, but there were several changes among the smaller companies. The top four held the same spots as the third quarter of 2013, with JPMorgan Chase & Co. holding the No. 1 spot. After that, many companies saw their rankings rise or fall.

Wells Fargo & Co. reported an increase in its deposits and joined JPMorgan and Bank of America Corp. in the group of companies having more than $ 1 trillion in deposits. According to Wells Fargo’s recent Form 10-K, total assets grew 8% in 2013 to $ 1.4 trillion, funded predominantly by strong deposit growth. Core deposits grew $ 73.1 billion, or 8%, in 2013. The predominant areas of asset growth were in short-term investments, which increased $ 92.9 billion, and loans, which increased $ 29.9 billion.

The largest upward movements in the top 50 were seen by Charles Schwab Corp., which sprang up three spots to No. 16 from No. 19, and Scottrade Financial Services Inc., moving up three spots as well, to No. 45 from No. 48. Charles Schwab’s assets rose to $ 133.64 billion from $ 117.66 billion, while Scottrade Financial’s assets jumped to $ 25.13 billion from $ 22.64 billion in the third quarter.

The biggest downward movement was Regions Financial Corp., dropping to No. 20 from No. 18 as its assets fell to $ 121.35 billion from $ 121.80 billion.

SNL’s ranking by assets is pro forma for pending M&A deals and transactions that have closed since Dec. 31, 2013.

FirstMerit Corp., which had entered the rankings at No. 46 in the third quarter of 2013 due to its announced acquisition of Citizens Republic Bancorp Inc., remained at the same position in the fourth quarter of 2013. The ranking is based on Citizens Republic’s $ 9.59 billion in assets and FirstMerit’s $ 14.91 billion in assets as of Dec. 31, 2013.

M&T Bank Corp., which rose to the 17th spot in the third quarter of 2013 with its announced $ 3.81 billion acquisition of Hudson City Bancorp Inc. on Aug. 27, fell to the 18th spot. M&T’s new ranking is based on a combination of its $ 83.01 billion in assets and Hudson City’s $ 40.60 billion in assets as of Dec. 31, 2013. The asset size has not been adjusted to reflect M&T’s intent to pay down approximately $ 12 billion of Hudson City’s long-term borrowings by liquidating its comparably sized investment portfolio.

SVB Financial Group was the sole newcomer to the list, which cracked the rankings at No. 49. It dropped off the list in the third quarter of 2013 after falling short. Its assets rose to $ 22.77 billion from $ 21.58 billion in the previous quarter.

Exiting the list this quarter was GE Capital Retail Bank, a unit of General Electric Capital Corp. General Electric Capital filed a consolidated regulatory filing with the Federal Reserve for 2013, its first bank holding company filing, which caused its exclusion, since SNL excludes holding companies with deposits totaling less than 25% of assets from the ranking. Its deposit-to-asset ratio stood at 8.50% at Dec. 31, 2013. GE Capital acquired the U.S. retail depository business from MetLife Inc. on Jan. 11. As a result, approximately $ 6.4 billion in bank deposits have been transferred to GE Capital Retail Bank. After the deal, MetLife started the process of deregistering as a bank holding company. On Feb. 14, it announced that it had received the required approvals to deregister as a bank holding company. MetLife has not appeared on SNL’s top 50 ranking in the past because its deposit levels were too low.

Some other large firms regulated as bank holding companies, such as Goldman Sachs Group Inc. and Morgan Stanley, are also not ranked since their deposits totaled less than 25% of assets.

A number of ranked companies recently announced noteworthy specialty finance asset deals. Although these deals met SNL’s threshold for calculating a pro forma ranking, there was not enough disclosure to make adjustments. Those deals are: Bank of America’s announcement to sell a residential mortgage servicing rights portfolio Jan. 6, with $ 215 billion in receivables; Bank of America’s completed sale of mortgage servicing rights Jan. 31, with $ 88.00 billion in receivables; Citigroup’s announcement Feb. 19 regarding the acquisition of credit card receivables from Capital One Financial Corp. with, $ 7 billion in receivables; Popular Inc.’s announced sale of a portfolio of nonperforming loans and real estate owned Feb. 28, with $ 1.02 billion in receivables; and Toronto-Dominion Bank’s Oct. 22 announcement to acquire a credit card portfolio from Target Corp. having $ 5.90 billion in managed receivables.

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An 80 20 mortgage loan is also referred to as a zero or no money down loan later. There is actually two loans, mortgage home regular home accounts for 80% of the price of the house and a second mortgage or loan capital consisting of 20% of the cost. The idea behind this type of loan is to avoid mortgage insurance (PMI) since the net worth of mortgage payment.

- No cost refinance

Almost all mortgages require a form of mortgage insurance, if you are unable to doA deposit of at least 20 percent. By acquiring a second mortgage or home equity loan for 20 percent of the costs you can get around this requirement, the second property loans as a deposit.

There are variations on this type of loan, a loan 80-15-5. This means that the borrower was a big mortgage to 80 percent of the purchase price of the house, a mortgage on his back 15 percent, and made a 5 percent down payment. This can be a good option if you have somethingThe money for a down payment, but not enough to cover the entire 20%.

- No cost refinance

The second mortgage may be a second or a fixed mortgage may be a line of credit. If there is a fixed second mortgage so the interest rate is usually fixed for the duration of the loan. Most mortgages are fixed rate second half from 30 to 15 that the second mortgage is amortized over 30 years, but is payable in 15 years.

The advantage of going with the credit line as a second mortgage is that interestis usually much lower than the second mortgage interest rate fixed. You can also use an interest only loan can save you hundreds of dollars in mortgage payments every month.

The 80 percent first mortgage can be a fixed interest rate (15 years or 30 years), with variable interest rate (typically 1.5, 1.7 or 10/1fixed period ARM) or interest-free loan only. Normally, the interest rate for mortgage loans second highest rate for the first loan. But because the borrower has to payMortgage insurance that cost less than a traditional mortgage, the mortgage interest rate higher for the second loan.

READ MORE http://www.nocostrefinance.goodarticlesite.com/avoiding-a-mortgage-80-20-mortgage-insurance/

Many of my clients keep asking me about the 40 year mortgage and the 80 20 mortgage and while these two kinds of mortgages are similar in many ways, they are also very different as well. The 40 year mortgage is supposed to lower your monthly mortgage payments while the 80 20 mortgage will increase your monthly payments because of the addition of the second mortgage. Both the 40 year mortgage and the 80 20 mortgage are fairly extravagant mortgage products that will only be utilized by a minority of home buyers across the nation. Despite this, they are both growing in popularity at a tremendous rate and it is always best for any home buyer that may be thinking about either product to first become educated about its fundamentals before any action is taken.

The 40 year mortgage is actually not that difficult to understand and it is really what its name entails it to be-a 40 year mortgage product that is instead made for 40 years instead of only 15 or 30. The 40 year mortgage is supposed to give people a lower monthly payment due to the extension of the repayment term and it does deliver in this regard if you look at it from a certain angle. While it does lower a person’s monthly payment by a certain amount, it often does not lower it by a significant amount after all is said and done. This is because the 40 year mortgage usually comes with a slightly higher interest rate than the more conventional 15 or 30 year mortgages and when you compare the two the 40 year mortgage only beats out the more conventional mortgage loans by a small difference. You need to be careful to run the numbers before you decide on this mortgage product as many times the cost savings it provides are a bit of an illusion.

The 80 20 mortgage is different from the 40 year mortgage in that its loan term is for more traditional time periods such as for 15 or 30 years and not 40.

The 80 20 mortgage essentially allows a person to come up with one hundred percent financing for their home purchase by allowing them to take out a second mortgage on the property for up to twenty percent of the price of the home. This will give the home buyer an 80 percent first mortgage, and a 20 percent second mortgage on the property, and for many home buyers this is exactly the kind of financing they need to purchase their home. Do your homework on whatever mortgage loan product you end up going with and in the end you won’t get deceived and you’ll walk out of the closing with a smile on your face.

An 80 20 mortgage loan is also referred to as a zero or no money down loan later. There is actually two loans, mortgage home regular home accounts for 80% of the price of the house and a second mortgage or loan capital consisting of 20% of the cost. The idea behind this type of loan is to avoid mortgage insurance (PMI) since the net worth of mortgage payment.

- No cost refinance

Almost all mortgages require a form of mortgage insurance, if you are unable to doA deposit of at least 20 percent. By acquiring a second mortgage or home equity loan for 20 percent of the costs you can get around this requirement, the second property loans as a deposit.

There are variations on this type of loan, a loan 80-15-5. This means that the borrower was a big mortgage to 80 percent of the purchase price of the house, a mortgage on his back 15 percent, and made a 5 percent down payment. This can be a good option if you have somethingThe money for a down payment, but not enough to cover the entire 20%.

- No cost refinance

The second mortgage may be a second or a fixed mortgage may be a line of credit. If there is a fixed second mortgage so the interest rate is usually fixed for the duration of the loan. Most mortgages are fixed rate second half from 30 to 15 that the second mortgage is amortized over 30 years, but is payable in 15 years.

The advantage of going with the credit line as a second mortgage is that interestis usually much lower than the second mortgage interest rate fixed. You can also use an interest only loan can save you hundreds of dollars in mortgage payments every month.

The 80 percent first mortgage can be a fixed interest rate (15 years or 30 years), with variable interest rate (typically 1.5, 1.7 or 10/1fixed period ARM) or interest-free loan only. Normally, the interest rate for mortgage loans second highest rate for the first loan. But because the borrower has to payMortgage insurance that cost less than a traditional mortgage, the mortgage interest rate higher for the second loan.

READ MORE http://www.nocostrefinance.goodarticlesite.com/avoiding-a-mortgage-80-20-mortgage-insurance/

Many of my clients keep asking me about the 40 year mortgage and the 80 20 mortgage and while these two kinds of mortgages are similar in many ways, they are also very different as well. The 40 year mortgage is supposed to lower your monthly mortgage payments while the 80 20 mortgage will increase your monthly payments because of the addition of the second mortgage. Both the 40 year mortgage and the 80 20 mortgage are fairly extravagant mortgage products that will only be utilized by a minority of home buyers across the nation. Despite this, they are both growing in popularity at a tremendous rate and it is always best for any home buyer that may be thinking about either product to first become educated about its fundamentals before any action is taken.

The 40 year mortgage is actually not that difficult to understand and it is really what its name entails it to be-a 40 year mortgage product that is instead made for 40 years instead of only 15 or 30. The 40 year mortgage is supposed to give people a lower monthly payment due to the extension of the repayment term and it does deliver in this regard if you look at it from a certain angle. While it does lower a person’s monthly payment by a certain amount, it often does not lower it by a significant amount after all is said and done. This is because the 40 year mortgage usually comes with a slightly higher interest rate than the more conventional 15 or 30 year mortgages and when you compare the two the 40 year mortgage only beats out the more conventional mortgage loans by a small difference. You need to be careful to run the numbers before you decide on this mortgage product as many times the cost savings it provides are a bit of an illusion.

The 80 20 mortgage is different from the 40 year mortgage in that its loan term is for more traditional time periods such as for 15 or 30 years and not 40.

The 80 20 mortgage essentially allows a person to come up with one hundred percent financing for their home purchase by allowing them to take out a second mortgage on the property for up to twenty percent of the price of the home. This will give the home buyer an 80 percent first mortgage, and a 20 percent second mortgage on the property, and for many home buyers this is exactly the kind of financing they need to purchase their home. Do your homework on whatever mortgage loan product you end up going with and in the end you won’t get deceived and you’ll walk out of the closing with a smile on your face.

The down payment for a first mortgage can deter eager would-be homeowners to get their first home. But with the clever 80 20 mortgage loan, they can get a mortgage without spending for the mandatory 10 to 20 percent down payment which can drain their cash reserves; but what’s the catch?

Inside the 80 20 Mortgage Loan

Traditionally, a first mortgage requires a down payment. This is to protect the lender’s investment but it also benefits borrowers because the interest rates are lowered. But if you do not have the cash for the down payment, the 80 20 mortgage loan or the piggyback loan is for you.

For this type of no-down payment loan, you get financing from two lenders. One will bankroll 80% of the loan amount while the other will loan you the 20% and that’s 100% financial backing! You get the money for your home plus the mandatory deposit.

Apart from getting financing for the deposit, you are able to sidestep the Private Mortgage Insurance because the property is financed in full. This is part of the appeal of the mortgage. To add to the exciting package, there is no out-of-the-package expense except for the application and closing fees.

Higher Rates

The interest rates for this type of loan is steep but you can haggle with the 80% lender to lower the interest rates a little but the 20% lender won’t budge because there’s little in it for him. But is it is faster to pay-off the second lender and if you do, you build the equity of your home faster. If your credit stays good, you can refinance the two loans into one package in the future. A good mortgage broker can help you do the maths if you are a good candidate for this type of loan.

San Jose, CA (PRWEB) February 27, 2013

California Mortgage Lender Arcus Lending recently launched 80/10/10 loan program. This program can help current homeowners get rid of mortgage insurance (MI) faster.

Homeowners who have less than 20% down payment usually pay mortgage insurance on their loan. Mortgage insurance is required in most cases on both FHA and Conventional loans with less than 20% down payment.

To eliminate MI, homeowners need to have 20% equity. By refinancing into the 80/10/10 loan program, borrowers who have at least 10% equity and who are paying mortgage insurance can get rid of the MI faster. Borrowers can also eliminate MI while buying a new home with only 10% down payment.

Arcus Lending is currently offering this in the states of California, Washington and Oregon. Borrowers need to meet certain credit qualifying criteria. Maximum loan amount between first and second is capped at $ 750,000. This loan is available only for primary residence. Minimum credit score of 720 is required.

Shashank Shekhar of Arcus Lending, said “This loan program can potentially save thousands of dollars for homeowners who currently have mortgage insurance. They can use that money to pay more towards their loan principal and build equity faster.”

Shashank who was named “top 40 under 40 mortgage professional” also wrote a blog post to explain this loan program. That post can be accessed at http://lendingexpertblog.com/say-no-to-mortgage-insurance-pmi-801010-loan-is-here/

About Arcus Lending:

Arcus Lending (NMLS 3446) is a mortgage lender offering home purchase and refinance loans in the states of California, Washington and Oregon. More information about Arcus Lending can be found by calling at 855.644.5626, by emailing at info(at)arcuslending(dot)com or by vising their website at http://www.ArcusLending.com









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