Virginia mortgage rates and industry news

Remember the term 80/20?  How about 80/15/5?  If not...let's take a walk down memory lane.  An 80/20 meant you were getting two mortgages, and when combined, equalled 100% financing.  An 80/15/5 was a combo loan to 95% financing. 

In this ever changing mortgage arena, lenders are becoming increasingly cautious with their loan programs.  Second mortgages (the 20 and 15 as illustrated above) have taken a royal pounding in lieu of the many foreclosures and short sales, and lenders are cutting back the maximum combined financing allowed to purchase or refinance a property.  MOST nationally recognized lenders are only allowing up to 85% combined financing (think 80/5/15 or 75/10/15 here).  

Loan Planet, however, still has the ability to offer an 80/10/10 (90% combined financing) to clients with excellent credit.  How about Rates on those second mortgages?  We are currently offering home equity lines at 5.00% with zero points and closing costs up to 80% loan to value, and 5.75% with zero points and closing costs up to 90% 

Why is this so important?  As property values continue to decline or stabilize in certain markets, the equity we once had has drastically decreased.  If you currently have a combo loan with high rates, or a jumbo loan with high rates, our combo loans to 90% may be the ticket to substantially lower your payments.  Give me a call or send me an email to see if this type of loan structure could benefit you! 

How long will Loan Planet have combo loans to 90%?  That's hard to say, but they certainly won't last forever, so I suggest you act fast rather than regret it later.