105% LTV Mortgage Loans

[Luke Ache]

Hi all. I have been looking at some credit unions here in the HSV area that may offer some better terms financing than big banks and Redstone seems to be a good option-they have an agreement with my current employer, so I am leaning towards opening a personal and a business account with them.

It seems like they have a 105% LTV loan option- I used to do mortgages back in the day and I don't remember this product at all- the interest rates are high obviously but if you are looking to refinance to cash out in a few years, it may not be a bad option.

Is this essentially a "no money down" type of loan meaning the down payment, closing costs and points are already rolled into the loan? Or is this a first mortgage backed by a high interest second mortgage? I am trying to understand how this may work.