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In article <1151454778.121116.31580@j72g2000cwa.googlegroups.com>,
"rafiki" <ficke@erols.com> wrote:
> Hey all, was wondering if someone could share some advice for a first
> time buyer. I'm getting a house with a 80/15/5 loan. The 15% loan
> has a very high interest rate. I am thinking about getting a loan from
> another bank for the amount of the 15%, paying off the first lender,
> and thereby reducing my monthly payments due to the smaller interest
> rate. The lender's rate for the 15% is 8.45 on a 15 yr balloon
> payment. Could I go to another bank and borrow the amount for the 15%
> at 6.3% and pay the first lender off? Is there some sort of catch I am
> missing?
Hvae you looked at simply doing a straight 95% loan? People
do this 80/15 thing to avoid PMI. If you do the math, you
often find that the straight 95% loan with PMI is cheaper both
by the month and over the long run than the high-rate 2nd loan
scenario.
-john-
--
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John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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Re: real estate question
