Lenders often charge higher interest rates with larger loan amounts. The Combination loan allows you to keep your interest rate lower by combining two, smaller-balance loans. Both will beat interest rates on most Jumbo balance loans!
How does the Combination loan work? The Combination loan uses two smaller loans to finance the total loan amount. The standard combination is a fixed-rate 1st with an adjustable rate 2nd.
Can't I get the lowest payments by financing the whole loan amount with an ARM? Sure, Jumbo adjustable rate loans also offer lower rates than Jumbo fixed-rate loans, but you risk more exposure to rising payments as interest rates adjust when all of your balance is subject to the adjustment. Since only a portion of the Combination loan is adjustable, you have less exposure to increasing interest rates.
May I pay off my second mortgage? You can pay off the 2nd mortgage at any time, keeping just the 1st mortgage balance and pay,ment. Lower your payments without refinancing!
Simplify your relocation transaction. Relocating, and the sale of your current home will not be complete before you close on your new home? Use an Equity Bridge loan to tap the equity in your current home, and a Combination loan to finance your new home. The Equity Bridge loan uses the equity in your current home as down payment on your new home, and allows you to qualify for the new purchase without counting the existing house payments or bridge financing! Then when your home sells (after repaying the Equity Bridge loan) you can use the proceeds to pay down or pay off the adjustable-rate portion of your Combination loan, lowering your payments without refinancing.
No-hassle, low-doc/no-doc loans. Mortgage financing is second only to tax filing on the list of dreaded exercises, and yet mortgages can be incredibly easy. Whether you're self-employed, salaried, or retired, the Combination loan is available with minimal or no documentation of your income or assets. (Qualify with just an appraisal and a credit score.)
No so perfect credit ? Even if you have less than perfect credit, we have loans designed to bridge the gap between traditional loan programs and more expensive subprime loan programs. Reestablish your credit while saving money today!
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