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Are 80/10/10 loans a good idea? What are the Pros/Cons?

Are 80/10/10 loans a good idea? What are the Pros/Cons?
  • August 05 2013 - West Palm Beach
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Answers (4)

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Ok - update. I have decided to put my home in WPB on the market in hopes to be able to get approved for the loan for a home in Palm City, FL. Now, with that said...if it sells within 30-60 days, what are my odds at getting approved for a $215k loan?

Again - been in my job for 10 months. It's a salary + commission sales job. Projected to make approx.$75-$80k this year. (past two years 2011 - $90k & 2012 - $43k). Credit is excellent. Able to put around $30k down. My monthly debt is only a $443 car payment.

Thoughts? 
  • August 05 2013
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How have some good advice from Jay & Mike.  Your credit score, debt to income ratio and other factors may also influence which option will work best.  I would also consider a no or low closing cost option so you have more flexibility to refinance should market conditions allow later.
  • August 05 2013
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If you think you'll be in the home less then 5 years then it's a great idea to avoid M.I. and lower your monthly payment.

Long term, locking in a 30 fixed with M.I. would be a better option.

GL
  • August 05 2013
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Pros: Less money down, No PMI. Cons: Most Seconds are variables, so interest rates may move up or down (pending where Prime lands) and more money borrowered equals higher monthly payment.
  • August 05 2013
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