Wisconsin and Illinois Interest Only
Combo 80/20, 80/15/5 and 80/10/10 Loans

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RELAX WHILE AMERISTAR HANDLES YOU INTEREST ONLY COMBO MORTGAGE LOAN!
Whether
purchasing or refinancing your home, you can build your equity (i.e. pay
down your mortgage) faster by NOT using a loan that requires private
mortgage insurance in the structure of your financing. This is best
accomplished with a "Piggy-Back" mortgage.
Private mortgage insurance (PMI) enables you to buy a home with less
than a 20 percent down payment. Likewise, it allows refinance loans with
less than 20 percent equity in your home. Though PMI allows many people
to obtain financing, the added monthly cost can be significant. The
portion of your monthly mortgage payment attributed to PMI is like
paying rent because paying this money benefits someone other than you.
The Piggy-Back mortgage is simply an additional (2nd) mortgage that
represents any amount financed ABOVE the 80% Loan-To-Value level. A
first mortgage is written for 80% of the loan-to-value amount with the
second mortgage written for the remaining loan amount requested. This
prevents the need for PMI. An additional benefit is that ALL of your
monthly payments go to the reduction of principle (on your 2 loans) and
may be tax-favored. PMI doesn't give any tax advantages and the money
paid for it simply vanishes every month.
If you see mention of an
80-15-5 loan, it means that the
borrower got a main mortgage of
80 percent of a home's purchase
price, a piggyback loan for 15 percent, and made a 5-percent down
payment. Combinations, such as 80-10-10,
are also possible.
More
purchasing power with a lower 2nd mortgage payment
Greater flexibility and more control over monthly cash
flow
Added
rate security with a closed end second
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