Mortgage rate question

[troyvcd1]

I am trying to buy a house. I am going through a mortgage broker and he wants to set me up with a combo 80/10/10 mortgage where I will pay 10 percent down and get one loan for 80 percent of the balance and another loan for the remaining 10 percent. The real issue I have is with the rate of the 10 percent loan. The 80 percent loan is quoted at a good 5.75 percent but the additional 10 percent loan is quoted at a whopping 9.0 percent. This seems excessive at 9.0 percent. Any help?????

[canadateck]

I have done this,and the 10% was always at or just above the 80%, somthing like 5% and the other5.1%.

Shouldnt this be in off topic>?

[troyvcd1]

Ya it should be in off topic but they dont post off topics to the latest topics. Thanks for your advice. I think I am trying to get ripped off. Anyone else confirm that the mortgage guys is trying to rip me off.

[canadateck]

You should be getting one Mortgage.Why must you get two?

I did this because I own a few Apartments,Looks better for tax and Lawyers.

[Headbanger's Ball]

You're better off going through a bank, first of all.
Second, home loans are insured by the gov't up to 80% of the value....that's why banks want 20% down. If you go a no-money down loan, you have to pay for insurance on the 20%.
If your credit isn't an issue, try for a no-money down loan through the govt. The Dept of AG has a good loan program & less stringent requirements for homes to qualify.
There is also something called a "buyers fund" (look it up) that can be a benefit to the buyer.
But the best thing you could do is shop around for a mortage/bank & rates then get some sort of loan approval before house hunting.
Your broker sounds a little crooked to me.

[canadateck]

If not insured here (Canada) its 25%.

[Headbanger's Ball]

What I think the broker is doing is giving a mortage rate on the 80% & a private loan intrest rate on the remaining 10%. It's good for him, but you can find a better deal.
I checked the rates at my Credit Union...an unsecured loan with kick-ass credit is 10.7%...crap credit is 17.7%. I still think you can do better shopping around.

[troyvcd1]

Ya the broker sounds crooked to me too. I got good credit but only have 10% down and my income is borderline for the mortgage I want. Even so the mortgage guy said I can get this low 80 percent loan with a 9 percent 10 percent. He probably can make a bundle off a 9 percent loan.

[lordsmurf]

Ya it should be in off topic but they dont post off topics to the latest topics.

Don't do that again. It's not on the front page for a reason.

[Headbanger's Ball]

I was house shopping earlier this year. I qualified for a no-money down loan with good credit & found out about gov't programs & the buyer's fund too.
The best thing you can do for yourself is keep shopping for a better deal first. Good credit & a 20-30 year debt go a long way at the banks.