I was pre-approval by another financial company it quoted me of paying $2,000 monthly if I were to borrow $260K with an interest rate of 6.625% plus cost of insurance and property taxes.
Now, after searching for different lenders I see something like an interest rate of 5.875% with a monthly payment of $1,230.40 (closing cost = $6,677.00).
The confusing part is this: "We have broken your loan into an 80% 1st loan amount of $208,000 and a 2nd loan amount of $52,000 to avoid PMI. The quote below is for the 1st only. Your $52,000 2nd could have a payment as low as $347. Please call a loan consultant to get a customized quote for the 2nd."
What does the 80% means? I'm borrowing $208K first to reduce monthly payment?
2007-11-21
07:19:20
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8 answers
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asked by
James P
1
in
Renting & Real Estate