| If you are a homebuyer lacking the necessary 20% | | | | insurance policy that many borrowers are often |
| down payment to purchase you home, an 80/20 | | | | required to purchase that can add hundreds of dollars |
| mortgage could get you the financing you need. An 80 | | | | to your payment amount. |
| 20 mortgage is basically two loans covering 100% of | | | | Another advantage of a piggyback mortgage is that |
| the purchase price. Here are the basics of 100% | | | | the loan typically comes with a fixed interest rate. You |
| financing to help you decide if this type of loan is right | | | | may have the option of taking out a line of credit for |
| for you. | | | | your second mortgage; if you take the equity line of |
| The 80 20 mortgage is actually two loans covering | | | | credit your loan will have an adjustable interest rate. |
| 100% of the purchase price. Your primary mortgage | | | | The interest rate on your second mortgage will be |
| will cover 80% of the purchase price; the remaining | | | | higher than your primary mortgage because this lender |
| 20% will be a second loan often referred to as a | | | | assumes a greater risk. |
| "piggyback" loan. This type of mortgage has the | | | | To learn more about your no money down mortgage |
| additional benefit of not requiring Private Mortgage | | | | options, register for a free mortgage guidebook. |
| Insurance. Private Mortgage Insurance (PMI) is an | | | | |