4 ms·
I considered 80-10-10 over traditional 20% down as a way to lower my risk and leverage cheap interest rates. Put the other 10% down in a diversified stock port
by cobookman 8y ago
I considered 80-10-10 over traditional 20% down as a way to lower my risk and leverage cheap interest rates.
Put the other 10% down in a diversified stock portfolio over 10 years would likely fetch > 4.5% apr.
- sjg007 8y agoA lower down is good when the market is appreciating fast and you can either refinance or get PMI removed.
- deleted 8y ago[deleted]
- conanbatt 8y agoThis gives you extra exposure from a credit perspective. Its collecting pennies in from of the steam-roller.
- muzz 8y agoThese offers would be competing against 80-20 offers though. For the past several years in the Bay Area, it's been hard to buy even with an 80-20 because there are other buyers that put more cash down (and sometimes 100% cash).
- cobookman 8y agoYou can make an offer of 80-20 then do financing with 80-10-10. Once they accept the offer all they care about is getting their money. Note you still Need to show in your offer letter that you have the cash to do 20% down. Note an 80-10-10 is both an 80-20 mortgage along with a 10% loan.
- muzz 8y agoSure you can even do 100% cash and then refinance to 80-10-10. Although in both cases the rate is usually 50 bps higher, and all refinances essentially have a 1 point origination fee (this is often "baked in" so many people think it doesn't exist).