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We are considering putting an offer on a house at $600K, have only 20% down payment ($120K). The remainder ($480) need to be secure using a mortgage loan. Could you please comment on options we can pursue when it comes to avoiding a (A) jumbo loan (B) PMI (C) getting a combo piggy-back loan? What is the financially best way to proceed forward? Please take into account that we have stellar credit rating, and will be getting the best available rates. Thanks in advance!
We are considering putting an offer on a house at $600K, have only 20% down payment ($120K). The remainder ($480) need to be secure using a mortgage loan. Could you please comment on options we can pursue when it comes to avoiding a (A) jumbo loan (B) PMI (C) getting a combo piggy-back loan? What is the financially best way to proceed forward? Please take into account that we have stellar credit rating, and will be getting the best available rates. Thanks in advance!
What State are you in? Where I am, that would not be a jumbo loan.
There is a second category called Fannie Mae High Balance. It's slightly higher in rate than the conforming loan limit and is driven by county, as to the max loan. Here, it's 625K for the Wash DC area counties, yet Baltimore is ~480K.
You could splinter off the 63K difference into a 2nd loan, but I'm really wondering if the savings on the first would really warrant the effort. Most seconds are running in the mid to high 7's.
The only way to tell is to find a loan office that can offer both, so you can see the difference.
Try a "line of credit" for the amount above the $417,000 from the same lender. Currently mine is at a interest rate of 2.6%. It is however a variable rate.
Try a "line of credit" for the amount above the $417,000 from the same lender. Currently mine is at a interest rate of 2.6%. It is however a variable rate.
We are considering putting an offer on a house at $600K, have only 20% down payment ($120K). The remainder ($480) need to be secure using a mortgage loan. Could you please comment on options we can pursue when it comes to avoiding a (A) jumbo loan (B) PMI (C) getting a combo piggy-back loan? What is the financially best way to proceed forward? Please take into account that we have stellar credit rating, and will be getting the best available rates. Thanks in advance!
No way to avoid all 3 (a, b & c), unless you are in one of the 'high cost' counties of NC.
The OP stated s/he has 20% down; that means no PMI ("b") required!
ahh. saw the word PMI and glazed over the 20% part.
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