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What is 80/10/10?
Is there a way to put down less than 10% cash and avoid PMI?
BayArea saysWhat is 80/10/10?
10% out of pocket
10% as a secured loan in a 2nd position to the 1st.
80% as a traditional conforming mortgage aka trust deed.
But the 2nd 10% is a heloc? It will be higher rate than the 80% loan.
This first preliminary description of outcomes among patients with COVID-19 in the United States indicates that fatality was highest in persons aged ≥85, ranging from 10% to 27%, followed by 3% to 11% among persons aged 65–84 years, 1% to 3% among persons aged 55-64 years, <1% among persons aged 20–54 years, and no fatalities among persons aged ≤19 years.
55-64 = 1% to 3%
65+ = 3% to 11%
55-64 = 13%
65+ = 16%
2020 pop = 331M, so 50% infected = ~165M
55-64 group = 165M X 13% = 21.5M
65+ group = 165M X 16% = 26.4M
55-64 group = 21.5M x 2% = ~0.43M
65+ group = 26.4M x 7% = ~1.85M
9. Migration to lower cost areas.
Saw a moving truck last weekend. COVID-19 killed the elevator pitch. The migration has begun?
Some of those ideas may not be available for a rental property. For instance you can't put 20% down (legally) for a 30yr fixed the minimum is 25%.
You just tell them it will be your primary... then you rent it out after it closes. Come on, it’s banks you are dealing with here, not starving children.
y'all need to get better banking relationships.
Fraud is right. And the bank will call the loan if you make the place a rental, as the loan was likely government backed on the provision that it was for owner occupancy only.
Might trigger a clause where the bank can call in the loan as well.
If housing does follow the stock market (assuming this corona shit goes into multiple months), might be a good time to pick up a rental, or even a new primary home:
Given today’s interest rates, I’ve been giving some thought to what the best mortgage option is and wanted to see what you guys think.
30yr fixed 20% down
30yr fixed 10% down PMI
7/1 ARM 20% down
7/1 ARM 10% down w/ PMI
10/1 or 7/1 interest only with either 20% or 10% down
I can also avoid PMI in the 10% down payment option by taking out a second loan to cover the missing 10%...
Part of me wants to avoid putting down a full 20% and I sort of like the idea of doing interest only for smallest possible mandatory payment and pay the principle off at my own pace.
What do you think? What’s the appropriate play in today’s climate?
I should qualify a few points for consideration:
a.) we are at 0% federal rate. It can only go up from here.
b.) my overall feeling is that real estate market upside will be limited over the next 5yrs or so.
c.) lets assume I would hold for a decade or so.