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Mortgage Glossary

Piggyback Loan

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

A piggyback loan pairs a first mortgage with a simultaneous second mortgage to avoid PMI or stay under the jumbo limit.

What Piggyback Loan means

The classic 80-10-10 structure is an 80% first loan, a 10% second, and 10% down. It sidesteps mortgage insurance and can keep the first loan conforming.

Florida example

A Florida buyer of a $500,000 home uses an 80-10-10: a $400,000 first, a $50,000 second, and $50,000 down. They avoid PMI and keep the first mortgage at conforming pricing.

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