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Posted by  BrendaTx on 6/1/06 10:39am
This is a good and common question:
"What's a first and second?"
Two NR Posters answered:
Re: 1st and 2nd
Posted by Ndwa of WA on 6/1/06 9:57am
Msg #123415 from logged in user
AKA piggy back, combo, double, or 80/20 where you'd have 2 sets of loan to be signed.
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Re: 1st and 2nd
Posted by CMS_NY of NY on 6/1/06 10:07am
Msg #123423 from logged in user
An 80/20 is the type of loan package the borrower went with their Loan Officer. The "80" is 80 percent of a 1st Mortgage and the "20" is 20 percent of a 2nd Mortgage.
So, for a $100,000 loan amount the borrower would obtain an $80,000 mortgage on a first (generally with a LOWER interest rate) and a $20,000 mortgage on a second (generally with a higher interest rate than the first).
2/28's are mortgages where they are FIXED for 2 Years, then turn to an ADJUSTABLE Rate for 28 years. (Which would total a 30 year mortgage). On these types of mortgages borrower's usually obtain a lower interest rate than a 30 year fixed for the first two years....most borrower's generally refinance before the rate starts to adjust.
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