Michael Dunsky offers these combination of “blended” or “piggy-back” loans as a way of reducing financing costs for some homebuyers. As the name implies, these programs consist of two mortgages a first and a second. The first mortgage is usually in the amount of the Fannie Mae/Freddie Mac maximum presently $333,700 (2004 limit). This mortgage loan carries the lower interest rate that results from the Fannie Mae/Freddie Mac backing. This interest rate is often 1/4 -1/2% below the rate on a “Jumbo” loan. The difference is made up in the form of a second mortgage, with an adjustable rate. The blended cost of the first and second mortgage is usually significantly less than the cost of a jumbo mortgage.

For example, assuming a loan of $380,000:

Combined Savings of $88.70/month
(on a 30 year term, you just saved over $31,500)

BENEFITS:

For certain homebuyers, the First and Second Combination can be the “best of both worlds”- a reduced rate on the amount of the first mortgage and limited risk on the smaller amount of the second mortgage. The ultimate savings can be substantial. Even homebuyers who want the ease and simplicity of one mortgage may be willing to accept the risk of two loans as the cost savings can be significant. The First and Second Combination is not the right program for every “Jumbo” borrower, but it can make sense for many. Michael Dunsky will provide the financial comparisons needed to help you decide whether this program is appropriate.