Combo Mortgage Loan

A combo mortgage loan is where we combine the use of a first and second mortgage in order to accommodate a borrowers request to either avoid mortgage insurance or a down payment. An 80/20 combo reflects two mortgages, one at 80% of the acquisition cost and the other at 20%. An 80/15/5 reflects a 5% down payment. These are very smart loans. Our 80/20 interest only is our most popular, it allows for interest only payments on the first and second mortgage (the second being a HELOC).

Advantages: Lower monthly payment & larger tax deduction. You can control how much of a down payment you want to contribute. There is no mortgage insurance. Once the second is paid off you will have a lower housing expense.

Disadvantages: You have to write two checks, one for first mortgage payment and the other for the second.