Mike O'Donnell, I would Love to be Your Full Time Realtor Put me to work for you
What are 80/20 Loans?
Please feel free to call or email me anytime.
Mike O'Donnell
615-473-5684
Tema@comcast.net
mbororealestate.com
Sometimes your lender or broker will offer you an 80/20 deal, where you get one loan for 80% of the price, and another for 20% of the price. Why on earth would they do that, rather than keeping it simple? Because it's typical for the 20% loan to carry a higher interest rate, which makes more money for the bank.
But there's an advantage for you: With a 100% loan you usually have to pay for private mortgage insurance (PMI), while with an 80/20 loan you usually don't.
So which is better? It's different for each situation. For an apples to apples comparison, you need to find the total monthly payments, including PMI, for each loan deal you're offered, over the life of the loans.
If you can afford to put 20% down, you should. You'll get a better interest rate, won't have to pay for Private Mortgage Insurance, will qualify for a larger loan, and will save on interest.
If you ever have any questions or need help with any real estate needs or know someone who does please feel free to call or email me anytime. I would love to have the opportunity to be your neighbor and realtor.
I never force a seller to continue to use me as their agent if they are not comfortable with my style or methods. I will allow you to cancel our contract at anytime you are not happy with me or you just change your mind.
Please feel free to call or email me anytime.
Mike O'Donnell
615-473-5684
Tema@comcast.net
mbororealestate.com
Home of the no risk listings. The number one reason home owners who are thinking of selling are hesitant to sign up with Real Estate Agent is they are afraid of the long term contract. Now we’ve removed that problem. When you let us help you sell your house we will allow you to cancel the contract at anytime. If we are not living up to what you expect from a realtor or if for some reason you change your mind we will cancel the contract that day. Now that’s peace of mind.
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