General Area in San Ramon>Question Details

Vish, Home Buyer in San Ramon, CA

Hi, I am on FHA loan and thinking to refi. My current LTV ($520k/$595k) is around 87-88%. I am looking for 80/10/10 or 90/10. which is better and why?

Asked by Vish, San Ramon, CA Thu Jan 17, 2013

Help the community by answering this question:


Hi Vish,

Answers provided by others here, are ways of getting an FHA 80/10 with you coming up with the final 10%.
What you need to keep in mind is that the HELOC (the 10% loan) is variable and could go up up to about 18% interest within months or years.

With that in mind, is that going to be a good option for the future? Only you can decide.

Douglas Lagos
Realtor, Certified HAFA Specialist
Coldwell Banker
0 votes Thank Flag Link Wed Jan 23, 2013
Hi Vish, consult your lender.
0 votes Thank Flag Link Thu Jan 17, 2013
Hi Vish:

There are three possiblities for you here:

-90/10 with mortgage insurance MI. With MI still be tax deductible, this would be satisfactory for as long as MI is tax deductible.

-lender paid MI which bumps the rate up a small amount, but the added MI factor and its tax dedcutiblity would never be 'on the chopping block'

-80/10/10. The first is a conventional mortgae with the most positive pricing.
The second would be a Home Equity Line of Credit (HELOC). This loan goes into second postion behind the first mortgage. The interest on it will always be tax deductibl.
It is an adjustable. The index makes this adjustable. The index in this case would be the Prime Rate. Adding the 3.25 margin to this, the market rate is 5.24%.

What I would suggest is that we look at each scenario (monthly costs, closing costs, interest rate, etc)and do an evaluation of what is best for you.

Regardless, your home value has certainly increased to a point where you do not need to be in an FHA mortgage!

If you would like greater detail, email me at:
I do have office in both Pleasanton and Fremont for us to meet and work those numbers, as well.
0 votes Thank Flag Link Thu Jan 17, 2013

My lender, Greg Sawdey, with Summit Funding would be a great person to answer this question. His e-mail is Great guy - lives and works in San Ramon.My initial thought -If you were to go with an 80/1010, there would be no mortgage insurance, which should save you some money.
0 votes Thank Flag Link Thu Jan 17, 2013
The Hagley G…, Real Estate Pro in Pleasanton, CA
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