Wisconsin and Illinois
Combo 80/15/5 and 80/10/10 Mortgage Loans
Effective immediately, and solely as
consequence of recently issued announcements by Fannie Mae and Freddie Mac
mortgage insurance companies, Ameristar Mortgage is implementing the
All conventional programs with LTV/TLTV/HTLV over 97% are discontinued. We
will continue to offer some refinance and cash out refinance loans, FHA, VA and Rural Housing loans with 100% financing.
Individual pages on our website will be updated to reflect this change as
soon as possible.
Puzzled about combo 80-15 mortgage loans? Ameristar
Mortgage can help!
80/15 mortgage loans sometimes
called a Piggy-Back loan, is a program designed to help
Borrower's purchase a home with 5% down while avoiding
Mortgage Insurance. An 80/15 loan is actually 2 mortgage loans, a
1st mortgage (at 80% of the value of the home) and a 2nd
mortgage (at 15% of the value of the home.)
80/15 loans eliminate the need to pay Private Mortgage Insurance
(also known as PMI) and also generally provide considerably
lower rates than other types of 95%-97% financing. 80/15 financing
helps to keep your payments low and gives you the freedom
of not having to put any money down.
Choose a fixed rate, 5/1 ARM or 7/1
ARM for 80% of your financing.
We will attach a second mortgage
to finance the remaining 5, 10 or 15%.
We will underwrite both loans at
the same time.
Fees are minimal on the second mortgage
80/15/5 purchase and refinance transactions available
80/10/10 also available.
An alternative to 80/15 mortgage is a 97% loan. To avoid
paying for the Private Mortgage Insurance (PMI), Ameristar
(Lender paid PMI). This type of loans is comparable
to an 80/15 loan. The advantage is that you pay for only
one mortgage and you can finance up to 97% of the value
of the home. The disadvantage is that the interest rate
is always higher than the loans with PMI. Contact us to
find out more about the 97% loan with LPMI.
An 80/15 or 80/10 mortgage is also a good option to consider for
those who plan to put 10% to 15% down. If you compare
the difference in the payment of doing an 80/15 loan as
opposed to putting down 10% the difference in payment is
not much and you may prefer to keep the 5% as reserves for
You won't have to pay mortgage insurance!
The way to avoid paying mortgage insurance is by getting
a "piggyback loan" -- a second mortgage to back up the
first mortgage. The first and main mortgage is for 80
percent of the home's price. The piggyback loan is for
of the home's price. If you see mention of an 80-10-10 loan,
it means that the borrower got a main mortgage of 80 percent
of a home's purchase price, a piggyback loan for 10 percent,
and made a 10-percent down payment.