80/10/10 Mortgage Loan

80/10/10 Mortgage FAQs

• What is an 80/10/10 mortgage loan?

  An 80/10/10 loan is sometimes known as a combination mortgage or piggyback mortgage because it draws funds from a range of sources. You get a first mortgage to cover most of your loan then you get some of your financing through a secondary home equity loan.

  Here's how an 80/10/10 loan is broken down:

  • 80% of the home loan is financed as a first mortgage, such as a conventional fixed-rate loan.

  • 10% of the loan is financed as a second mortgage, known as a home equity loan.

  • The final 10% comes from a cash down payment, which is determined by the purchase home price. 

  Note that a home equity loan is different from a home equity line of credit (HELOC).
• What are the advantages of an 80/10/10 loan?

  One of the main benefits of an 80/10/10 mortgage is you don't usually need to pay private mortgage insurance, which can be expensive. 

  With conventional home loans, you need to pay PMI unless you have a 20% down payment. PMI doesn't protect you or your home, it protects your lender in case you default on your loan. 

  Another benefit of an 80/10/10 loan is it may free up your savings for something other than a down payment. You could invest the money, pay off debts, or even buy furniture for your new home. 

  The 80/10/10 loan gives you more flexibility and allows you to save on PMI costs.

• What mortgage rate will I get?

  Mortgage lenders base your rate on many factors, such as your loan amount and credit score. 

  The term you choose also impacts your rate. Shorter terms mean you'll get a lower rate and pay off your loan sooner, but your monthly payment will be higher. Longer terms mean you'll get a slightly higher interest rate and pay more total interest, but your monthly payment will be more affordable.

• How can I pay my mortgage each month?

  There are many options for making a payment to your JHFCU 80/10/10 mortgage:

  Online Transfer: Set up a recurring transfer or make a one-time transfer online from your checking, savings, or another transactional account to your mortgage account. Payments are credited and account balances are updated immediately. 

  JHFCU TeleBranch 24: Transfer your payment from a JHFCU account to your mortgage; just use your loan suffix number between 70 & 77 (EX: XXXXXXXXX-XX.)

  Pay Online from an Outside Bank: Set up JHFCU as a payee using your 9-digit JHFCU Account number - 2-digit loan suffix number between 70 & 77 (EX: XXXXXXXXX-XX.)

  Pay by Check at a Branch or via Mail

  Pay by Transfer In-Person

  NOTE: When setting up Online Bill Payment from an outside account, use JHFCU’s main address, 2027 E Monument St, Baltimore, MD 21205
• Do I need to be a member of Johns Hopkins Federal Credit Union to get a mortgage?

  Yes, you'll need to become a member first. Joining is quick and easy, see our eligibility requirements and fill out your application here!

  Then you'll be set to use your loan funds while enjoying all the benefits of credit union membership, like great rates and friendly, local service.