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Re: Broker vs Banker...idiot (Reply to this comment)
by bostenson
Just to weigh in a bit more.
An 80/20/0 (or similarly 80/10/10, 80/15/5) is a way to express what lorirobe used. 80/20/0 refers to taking out a 1st mortgage for 80% of the home value which avoids PMI, 20% of the home value as a 2nd mortgage (or home equity loan), and 0% down. It's a valid tool, particularly for 1st time homebuyers who may benefit from avoiding PMI. I've had a few mortgages now, including an 80/20/0 and it can work very well. It is most definitely not double-dipping, particularly considering that the fees WF charges for writing both simultaneously are very reasonable. It's not the right loan structure for everyone but is certainly something to consider.
I too have found Wells Fargo personnel very reasonable.
Now, to weigh in with some new information. WF offers a Home Asset Management Account if you have your primary mortgage with them. This can be the 2nd mortgage portion and satisfy the 20% situation written about earlier. The differentiator is that the Home Asset account can automatically increase it's limit as your home value rises and as your principle falls on borrowing within the account and in the primary mortgage. The home asset account is more of a container for loans than it is a loan itself. In my case, 1 year ago I borrowed my 20% as an interest-only floating rate loan. As rates rose and so did my equity, I wanted to step down my rate. Wells Fargo was able to convert the interest-only floating loan into a fixed rate loan at 1.5% less with no fees whatsoever. At the same time, the equity gains I've made remain available as they would in a line of credit. It's certainly the most flexible structure I've seen. If you talk to other lenders, many seem unaware that this even exists so be prepared for some confusion.
About 12 years ago I was not at all satisfied with Norwest. Norwest was subsequently acquired by Wells Fargo and I only went with them because of the very low rate they offered on my mortgage. Over the 14 months with them, I've been incredibly impressed with their service. I'll stay at my credit union for day-to-day checking but for my mortgage, Wells has had to compete multiple times and come out a champ.
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Apr 21 '06
2:54 pm PDT
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Broker vs Banker...idiot (Reply to this comment)
by mrmarbles2020
A mortgage broker has a choice of different lenders. So if you're locked into your "banker" you'll be screwed if the rates drop. so, if you're trying to helpful to the novice, you're not.
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Apr 09 '03
5:49 am PDT
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Re: "Two Mortgages?" (Reply to this comment)
by lorirobe
Hi,
It's nice to meet you here at Epinions.
Well, actually we would qualify for the total loan, so that is not the question. They simply divide up the loan to an 80% and 20% amount. Closing costs are only paid once. The only downfall is we are paying 8.25% on the lesser loan which happens to be the lowest rate for any bank who agreed to do the two loans.
Thanks for reading and commenting.
Lori
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Dec 11 '01
3:39 pm PST
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"Two Mortgages?" (Reply to this comment)
by ExBrave
Very informative and nicely written review.
I've never heard of a mortgage company allowing a potential home buyer to get two mortgages. Isn't that like "double-dipping" what we would call in the automobile sales business, when a buyer could not afford the full loan on a used car? Isn't that a risky way to get a mortgage? I know about PMI, because we once bought a house with under the 20% down. It was an outrageous fee.
Mike(ExBrave)
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Dec 11 '01
12:19 pm PST
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