Thoughts on this rate

[frugalQ]

What do you all think of this rate?

Home price 450k
80/15/5 mortgage
Conventional
Mid score 688

4.25% 30 year fixed (1st mort)
No origination fees

[mynameainttracy]

Can you tell me what a 80/15/5 mortgage means? 

[frugalQ]

it's a second mortgage product.  We are using it to avoid PMI and to keep our loan within Fannie Mae conforming limit.

80% - 1st mortgage

15% - 2nd mortgage

5% - downpayment

[Anonymous]

quick question ,

why are you avoiding FHA ? Why are you willing to pay 4.25 % interest?apart from the PMI, Any other reason to take commercial loans? my LO told me that if i had a score of 850 or 620, the FHA Loan, Rate 3.5 & downpayment would be same is that right? 

[frugalQ]

We are keeping our first home and it's FHA....can't have 2 FHA mortgages.

Besides, I think FHA has a purchase limit.

[cashm0ney]

Rates are very low now. I suggest if you want to refinance or buy a new house, start looking now and stay updated with the rates. When they are low, just lock it in.

External link removed -NewGuy-

[frugalQ]

I am in underwriting now and within my 60-day lock period. I'm trying to decide when to pull the trigger.

Because I'm going conventional and putting 5% down and less than 720 mid score, our rate will be a little higher....

I'm thinking 4.25% rate with no origination fee is pretty good for our situation. What do you think?