80/20 Eighty / Twenty
: definitionOur Real Estate glossary has definitions to 54
Real Estate terms or mortgage terms.
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| • 1/1 ARM
| | • 3/1 ARM
| | • 5/1 ARM
| | • 30 Year Fixed
| | • 7/1 ARM
| | • 50 Year Fixed
| | • 15 Year Fixed
| | 80/20 Eighty / Twenty
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| A strategy used to avoid paying mortgage insurance by either paying the seller of a property a 20 percent down payment (I.e. $20,000 on a $100,000 property) and having a mortgage for the remainder, or having a 20% second mortgage or Home Equity Line of Credit (see HELOC) and an 80% first mortgage. This cuts down the amount of the monthly payment and allows more of the payment to apply directly to principal, and monthly mortgage insurance premiums are not required. | | • 70/30 Seventy / Thirty
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