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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 and
mortgage insurance companies, Ameristar Mortgage is implementing the following changes:

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 loan.
  • 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 Mortgage offers LPMI (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 an emergency.

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 15 percent 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.

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