The initial mortgage lien is actually taken which have an 80% loan-to-worthy of (LTV) ratio, and therefore its 80% of the residence’s costs; another mortgage lien possess good 10% LTV proportion, plus the debtor can make a great ten% down payment.
Trick Takeaways
- An enthusiastic 80-10-ten home loan try arranged having a couple of mortgages: the original being a predetermined-rate financing on 80% of one’s home’s rates; the following becoming ten% as property security mortgage; in addition to remaining 10% as the a cash down payment. Continue reading “A keen 80-10-ten financial is a loan where earliest and you can 2nd mortgage loans try gotten at the same time”