Typically folks think about getting one mortgage to finance the purchase of a home. But there are circumstances where getting 2 mortgages can be a much better option.
Firstly, this topic is primarily for home buyers with a downpayment of between 10% and 20%; for those putting 20% or more (or those putting down less than 10%), it typically does not apply.
There are 5 good reasons to use 2 loans:
1) To avoid getting a Jumbo Mortgage
2) To have a lower monthly housing payment
3) To avoid mortgage insurance
4) If you're anticipating a big principal pay down in the near term
5) Financial Flexibility
But there are also 2 good reasons to NOT use 2 loans:
1) Principal amortization
2) Interest rate risk
As every single transaction is different, as are individual borrowers needs and goals, there is no hard and fast rule on this topic. A good Realtor and mortgage finance specialist can help you determine whether or not this is the right choice for you!
For more information on the systems that I use and the extremely effective strategies I employ for both home buyers and sellers, please contact me. Phone: 949.413.2371 Email: Michael@HausamGroup.com Or click on the link below!
Michael Hausam is a licensed Realtor (BRE Agent #1319560) and Mortgage Loan Originator (NMLS # 1577195). He's been a resident of Orange County, CA since 1990, he funded his first mortgage loan in 1991, has had a B-1 general contractors license since 2005, and he has had his real estate license for over 18 years.