HomeFAQWhat is a piggyback loan?
Costs & PMI

What is a piggyback loan?

Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A piggyback loan is a second mortgage taken alongside your first to avoid PMI or to stay under the jumbo threshold. The common structure is 80-10-10: an 80% first, a 10% second, and 10% down.

It avoids monthly mortgage insurance and can keep your first loan conforming. The second loan usually carries a higher rate. We'll compare the blended cost against simply paying PMI.

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