80 20 Home Loans

100%-80%-20% Question on my home mortgage…?

I was wondering if I could put both my home loans into one loan? I have an 80-20 loan. My 80% loan is at 6% intrest and my 20% loan is at 11% intrest. Why can’t I have a 100% loan and maybe a 6-7% intrest rate? Can anyone explain this to me? If this 100% loan isn’t possible, does anyone have suggestions on what I could do? Oh, and I don’t want any cash back or any of my bills included in the loan. Just the house. Thank you to everyone!
So, everyone thinks I should at least find out if I can get them into one loan? Maybe I will try and save as much as possible and continue paying off my second loan. Thanks everyone.

Well, here’s the deal. As a few members have mentioned, you currently have 100% financing as you did not have the 20% to put down. A broker gave you an 80 / 20 because it avoids PMI (private mortgage insurance) which basically guarantees the lender that in the event of a default in payment, they will pay for all foreclosure fees and the Lender will not loose money.

Now the reason you do not want to pay PMI is because there are no tax benefits! You should speak to a financial adviser to determine the current tax benefits available to you.

As previously mentioned, if there is equity in the home, you can refinance and consolidate your debt or, you can refinance for a lower rate on the 2nd loan. With interests rates at an all time low, now would be the best time to act if this is the direction you’re headed.

March 20: US Treasury’s fall to record low of 0.56%