private mortgage insurance: Piggyback Loan
- 03/29/11 02:30 PM
The Piggyback Loan is another loan that offers a low down payment as well as a way to avoid PMI (private mortgage insurance). It can be used to finance 80% of the home's purchase price. For instance, if a homebuyer only has enough cash for a 5% down payment it would look like this. 80/15/5. The "80" refers to 80% of the purchase price. The "15" is the second mortgage which finances 15% of the purchase price. The "5" is the down payment. Another one you could do would be 80/10/10.
Some lenders will allow 80/20 where the second mortgage … (1 comments)
The Piggyback Loan is another loan that offers a low down payment as well as a way to avoid PMI (private mortgage insurance). It can be used to finance 80% of the home's purchase price. For instance, if a homebuyer only has enough cash for a 5% down payment it would look like this. 80/15/5. The "80" refers to 80% of the purchase price. The "15" is the second mortgage which finances 15% of the purchase price. The "5" is the down payment. Another one you could do would be 80/10/10.
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