80/10/10, 80/15/5, AND 80/20/0 LOAN PLANS
The 80/10/10 loan plan combines two mortgages with a down payment: an 80% first mortgage, a 10% second mortgage, and a 10% down payment. Though the buyer finances 90% of the cost of the property, the buyer avoids paying the expensive mortgage insurance required on a 90% loan by dividing the amount financed between two mortgages. The buyer will pay a higher interest rate on the smaller mortgage, however. The 80/15/5 and 80/20/0 loan plans are other variations on the same scheme, the latter requiring no down payment.
MORTGAGE GLOSSARY
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Historical Federal Funds Rate
*National Rates
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