The term length you choose for your mortgage depends on your current financial situation and your long term financial goals.



The interest rate you receive on your mortgage loan is influenced by the term length you choose.

A piggyback mortgage is also known as an 80-10-10 loan because it involves a first mortgage for 80% of the purchase generally offered at a lower rate, a second trust loan (second mortgage) for 10% at a slightly higher rate and the remaining 10% as a down payment.

Whether you use a second mortgage or an unsecured loan to pay off credit card debt, often depends on several important factors including whether you actually own a home, what your credit rating is, and what the total dollar amount of the credit card debt is that you owe to various financial institutions.

Many second mortgage companies have has partnered with a home equity lenders to create loan programs specifically designed for consolidating debt that lower your monthly payments, and help you refinance revolving credit cards.

But with a flexible low cost mortgage loan, the interest you pay should be set at a more competitive level.

The main advantage of a 100% mortgage loan, especially if you have poor credit, is that you can get into a home with little or no cash down.

While FHA loans are funded by financial institutions such as mortgage centers or banks like conventional loans, it does not actually lend money but rather guarantees a loan in case of borrower default.

The Federal Reserve states that APR for traditional second mortgage loan takes into account the interest rate charged plus points and other finance charges.

For homeowners who have accumulated too much revolving debt, we suggest a debt consolidation loan that is secured to your home so you can deduct the interest for tax purposes, and save money with fixed rate simple interest loans.

This gives you the double benefit of reducing the amount of interest that you pay on your mortgage (and not having to pay tax on the interest that your savings no longer earn) while leaving an easily accessible cash fund for unexpected emergencies.

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