Re: About to buy a house
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What is an 80/20 loan?
What percentage is Property Mortgage Insurance tax?
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80/20 means you put 20% down, and get a mortgage for the remaining 80%.
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This is not what an 80/20 loan is. The 20 part is a second loan for 20% of what you're paying. It lets you get around PMI, which you have to pay up until you have 20% equity in your home. Basically, think of it as you're getting your mortgage for 80% and then you're borrowing the other 20% (at a higher interest rate) to put up as your 20% down so you don't have to pay PMI.
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This is correct. The mortgage that you put up 20% (or more) for the down payment is known as a conventional home loan.
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