What is a piggyback loan?
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.
How a piggyback loan works
A piggyback pairs two loans to skip PMI. You take a first mortgage for 80%, a second for 10%, and put 10% down. That is why it is called 80/10/10.
It avoids mortgage insurance while keeping your down payment lower. The second loan carries its own rate and terms.
When a piggyback fits in Florida
A piggyback shines when you are close to 20% but not quite there. It can beat paying PMI in the right case. The math depends on both rates.
We compare a piggyback against a single loan with PMI. Bring your numbers and we will show which one costs less.
Verify the details for your own situation against these government and agency sources: CFPB private mortgage insurance guide and CFPB Owning a Home guide.