Quote:
|
Originally Posted by pmacdaddy
Just curious. That is a conforming fixed loan and second mortgage with 30 year fixed amortization? Had not heard of that. What is rate on second mortgage?
|
Correct. 30 yr fix 6.75% on 1st mortgage and 3 yr fix on the 2nd at 6.75%. The 2nd mortgage can be 30 yr amortization, 1.5% balance payment or interest only. This is kind of a creative way of getting around some of the higher rates on Jumbo loans. I personally believe prime is going to start coming down, so I would be more willing to accept a 3 yr fix on the 2nd mortgage at that rate and obtain a better rate on the $417k. Now it is a different story if you are looking at loans that are in the $750k+ range, you might not want the risk on a huge 2nd mortgage that is only fixed for 3 yrs. It is entirely up to the customer, but my job as a mortgage professional is to find all of the available options and make suggestions to the client. I hope that helps