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July 22, 2006
Getting a Second Mortgage Loan to Avoid Mortgage
If you buy a house with less than 20% down or if you haven't built up at least 20% equity before mortgage refinancing, you'll typically have to pay private mortgage insurance (PMI). This protects the lender in case you default on the mortgage loan. "A piggyback mortgage is a second mortgage that closes simultaneously with the first," explains Chris Larson, chief executive officer with E-Loan, an online provider of consumer loans based in Dublin, Calif. A piggyback mortgage is also known as an 80-10-10 loan because it involves a first mortgage for 80% of the purchase generally offered at a lower rate, a second trust loan (second mortgage) for 10% at a slightly higher rate and the remaining 10% as a down
From Getting a Second Mortgage Loan to Avoid Mortgage
Posted by Alex at July 22, 2006 01:03 PM
