You have to compare the extra interest on the 20% loan to the PMI. You're not going to get a prime rate on your piggyback.

 

that 80/20 loan

i assume its making a 2nd loan for the 20%, right?

 

[QUOTE=Penforhire,Jan 20 2006, 11:27 AM] You have to compare the extra interest on the 20% loan to the PMI.

 

man, this 20% dp isn't going to be easy with the housing prices sky high here in socal

more questions:

i have to get pre-approved for house loan, right?

if i am pre-approved for say $80k and the house is only $70k after everything, does it mean i can still get a full loan for $80k and use the $10k for anything?

 

That's why ppl do the 80/20, 80/10/10, or 80/15/5

Yes you have to get pre-approved. Make sure you're getting pre-approved and NOT pre-qualified. They are two seperate things.

And no, unfortunately you can not keep the money if your loan amt is over the cost of the house....heheh.

 

oh man, there goes my C6 Z06

 

recent housing appreciation isnt good for anyone (except the Bank). its called hyper inflation!!!! dont talk to me about refis or helocs, dont people understand that this money needs to be paid back sooner or later? if you want to live a RENTED life, FINE. but suppose you sell and make a tidy profit, chances are you arent gonna keep any of it. you still need a place to live, right? so that profit gets dumped into a pricier place (people usually trade up, NOT down). anyone who buys a house right now at the PEAK (which i am 100% confident we are at) is already bankrupt. No further appreciation + 3% commission when you sell = Bankrupt homeowner. DONT BUY, its commiting financial suicide.

 

i am not buying NOW now

just that i need to get educated before i NOT get into a "commiting financial suicide"

 

It is great if you're ready to retire and move to a lower-cost area. I know someone at work who sold about 6 months ago and is living in an apartment just waiting to re-buy after his predicted crash. I don't know if he's smart or dumb (yet) but he only needs a 20-30% market drop to come out way ahead.

 

That sounds a lot like me