Combination Mortgage (Advice Needed)

[aamex]

Going through the pre-qualification process... there's a few things I'm trying to accomplish

1. Waive Escrow

2. Put 10% Down

According to a mortgage broker I talked to, that's only possible with a combination mortgage...is this true?

If so - here's what the combo would either be 75/15 or 80/10. Also, the combination mortgage gets rid of PMI in exchange for higher closing costs and maybe a higher rate..

Are there any other negatives to doing it this way? Should I just suck it up and escrow the mortgage/pay pmi? Or can I just find a broker/lender that will waive escrow without having me jump through all of these hoops?

[StartingOver10]

What are the hoops this lender is putting you through?

Escrowing your taxes and insurance are entirely different than paying PMI. Avoiding PMI is a good thing. Waiving escrow is a personal choice.

Isn't the higher rate on the second mortgage and not the first? That is normal anytime a lender is in secondary position.

You could avoid PMI by getting the Freddie Mac 10% down loan with no PMI.  I don't know if you can get the escrow waived though on a 90% LTV, I suspect not. It's worth checking out though.

[aamex]

Do you have a link for the Freddie Mac Loan? that's helpful - getting rid of the PMI is really what I'd like since that money seemingly goes to nothing that benefits me.

The only hoop so far has been the broker suggesting the combination which seems complex and costly. The rate would be higher on the second mortgage.

[StartingOver10]

You get the info through your mortgage person.

It is possible your mortgage broker doesn't have that particular program or have access to it.

Is your broker just a broker or do they fund their own loans too? If he is just a broker, I suggest going to a mortgage banker that funds their own loans. The process is usually much more smooth. If your current lender doesn't have access to the Freddie Mac program, pm me and I will send you a contact to someone that does.