Learn How 80-20 Mortgage Calculator Tips give you a Better Mortgage Program!

What is an 80-20 Loan Mortgage Calculator Program?

An 80-20 Mortgage Loan basically is (2) loans executed at the same time for the full value of the home. The 80 stands for the 80% first mortgage and the 20% represents the second loan or second mortgage. Added together they equal 100% of the value of the home!

Tip

Why would this be a good way to finance a home?

If you do not have much of a down payment then this is a good way to not pay PMI insurance in your payment. This would help keep your payment lower! An 80-20 Mortgage Calculator program offers lower payments!

PMI or "private mortgage Insurance", is a charge on a loan when there is less than a 20% down payment. The less a down payment someone has, the more PMI they would pay.

The old fashioned way would be if someone had a 5% down payment, then they would get a loan for 95% of the value of the home. They would then have to pay PMI insurance as part of their payment at a factor for a 95% loan amount.

Example

On a $95,000 loan with a 5% down payment the PMI portion of the payment would equal 61.75month. The first mortgage is the main mortgage on the loan and that is the one that the PMI is paid on.

20% is the Second Mortgage on an 80-20 loan.

Second mortgages are also liens on the property but lenders are willing to loan more on these loans without requiring any PMI insurance.

Many people, after they have lived in their houses for a while and built up equity, borrow a second mortgage against their home for a variety of reasons. Most notably for home improvements.

"It has just been recently that lenders have allowed the two loans to be taken out simultaneously so that people who have good credit do not have to make much if any down payment!"

Tip

Variety of 80-20 Mortgage Loan Calculator Programs!

Their are variations of the 80-20 mortgage calculator Program, but they are all basically to eliminate PMI insurance from the payment. One such loan is an 80/15/5. This breaks down to an 80% first loan(therefore no PMI) a 15% second mortgage and then the buyer would put down 5% of their own money for the down payment.

Tip

On an 80-20 Mortgage Calculator Program you will pay an increased rate on the first mortgage!

Maybe a quarter point higher! The second mortgage will also be at a significantly higher rate. As much as a 1% to 1.5% higher!

However on a loan with a small down payment, this trade off is still desirable. The PMI factor on zero to 5% down payment loans is very high and your payment would still be lower on a 80-20 Mortgage Calculator Program!

Secondly, the interest is usually tax deductible which creates an additional savings while PMI insurance is not tax deductible!

Tip

Maverick Lenders Leading the Way

There are what I refer to as Maverick Lenders leading the way in the mortgage industry. These lenders are Ultra service oriented. They are on the cutting edge for the best loan programs and the lowest interest rates.

Not too many people have heard about them. They deal primarily online. They are great to work with in every way. They work hard at acquiring your business and they prove it to you by offering the best rates and loan programs the market has ever seen!

You will win with these lenders on all levels and get what you're looking for. I highly recommend that you get a quote when working on your 80-20 mortgage calculator while visiting their web site, which you can access below.

You can kill two birds with one stone. It's easy, just fill out their online form. It will take two minutes. I believe you'll be pleasantly surprised!

Big Tip

These Maverick lenders have the easiest mortgage calculators online to use for free. Below are some links to access these maverick lenders and their customer oriented 80-20 mortgage calculators.

Having user friendly 80-20 mortgage calculators on their web site is no coincidence. By making the loan experience as easy and pleasant as possible, they will earn more customers.

Along with their great rates this is an especially powerful combination. Everybody wins. Just the way it should be!

	Web www.mortgage-calculator-tips.com