This option allows you to fold the cost of your mortgage insurance into the interest rate, so you pay a lower overall monthly payment than would otherwise be required. You may also potentially gain a larger tax deduction because the cost of the insurance is reflected in your interest rate, as opposed to being treated as a separate non-tax-deductible fee.1
This option is recommended for borrowers who:
- Have low equity in their current property
- Don’t want to make a larger down payment
- Want to reduce their overall monthly payments while potentially increasing their tax deductibility
Complete a Home Loan Express online application now or apply by calling us at 301-987-BANK or 1-800-987-BANK (out of area). Our Mortgage Advisors are available seven days a week. If you would prefer that we contact you, please complete our online request form.
By combining a first mortgage and a home equity loan, you can bypass the added expense of mortgage insurance and reduce your down payment. When purchasing a home with a smaller first mortgage, this can be an effective strategy to lower your first mortgage interest rate. The combo loan option may also help you avoid the higher interest rate typically associated with a jumbo loan.
A Combo Loan is recommended for borrowers who:
- Are first-time homebuyers and may not have the available funds to make a large down payment
- Have investments and would rather use a home equity loan as a down payment instead of liquidating investments
- Look to reduce their overall monthly mortgage payment by eliminating mortgage insurance requirements
For more information or to apply, call us at 301-987-BANK or 1-800-987-BANK (out of area). Our Mortgage Advisors are available seven days a week. If you would prefer we contact you, please complete our online request form.
