afm1
04-27-2005, 06:38 AM
I wanted to let everyone know about a scenario I recently priced out for a buyer of mine.
I am doing an 80/20 piggyback. The first trust is an interest only 5 year ARM and the second is a 30/15 Balloon (fixed).
I was working on doing a Interest only first which is a no brainer, but I had to decide if I should put this borrower in a HELOC 2nd. The way the rates have moved lately, it makes more sense to do the fixed rate for this particular borrower. She got a fully amortized second at 8% vs an interst only HELOC at 7.5%. I just thought I would share for those of you offering people 100% financing. :cool:
I am doing an 80/20 piggyback. The first trust is an interest only 5 year ARM and the second is a 30/15 Balloon (fixed).
I was working on doing a Interest only first which is a no brainer, but I had to decide if I should put this borrower in a HELOC 2nd. The way the rates have moved lately, it makes more sense to do the fixed rate for this particular borrower. She got a fully amortized second at 8% vs an interst only HELOC at 7.5%. I just thought I would share for those of you offering people 100% financing. :cool: