The Second Trust (Piggyback) Loan Americus GA

The following contains housing information you should know about the second trust (piggyback) loan and if you can avoid it. Read this review if you or a loved one is interested in buying and selling real estate in Americus.

Local Companies

After 5 Mortgage Company
(706) 507-2360
7000 Storage Ct
Columbus, GA
Janic Business Group Llc Cfic Home Mortgage
(404) 508-4977
798 Rays Rd
Stone Mountain, GA
American Mortgage Group
(770) 509-0546
3375 Chastain Gardens Dr
Kennesaw, GA
New America Mortgage Company
(678) 783-1076
401 Westpark Ct
Peachtree City, GA
Liberty Mortgage Solutions Inc
(770) 455-4252
4001 Presidential Pkwy
Atlanta, GA
Premier Mortgage
(770) 720-9821
Canton, GA
Regions Mortgage
(678) 567-1862
4271 Jimmy Lee Smith Pkwy
Hiram, GA
Liberty Mortgage Corporation
(770) 936-3250
3720 Davinci Ct
Norcross, GA
Suntrust Mortgage of Blue Ridge
(706) 632-1212
209 Marina Dr
Blue Ridge, GA
Benchmark Mortgage
(678) 422-0980
3433 Mosswood Ln
Rex, GA

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Even if you cannot afford a 20% down payment on your house, you may still be able to cross the threshold of your dream home. Many lenders will allow smaller down payments - as little as 5% in some cases. With smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance (PMI) which means:

 

  • you may be required to make an initial premium payment; and
  • pay additional monthly fees on top of your regular mortgage payment

 

If these extra charges don’t sound appealing to you, you may consider a second trust loan or "Piggyback Loan."

 

 

What is a Piggyback Loan?

 

A piggyback loan is a combination of two loans that close at the same time to purchase a home. The most common piggyback loan is an 80/10/10.

 

  • 80 percent of the home’s value is financed through a first mortgage.
  • The remaining 20 percent is equally divided between a second, piggyback loan and the down payment.

 

Example

Purchase Price 1st Mortgage Amount Down Payment Piggyback Loan Amount
$200,000 $160,000
(80%)
$20,000
(10%)
$20,000
(10%)

 

 

 

Piggyback Loans vs. PMI

 

As with every financial option, there are pros and cons associated with both piggyback loans and PMI. Choosing the option that’s best for you depends on your individual financial situation and your state’s regulations.

 

 

TIP:  Before deciding to select a piggyback loan instead of PMI, you should consult with a financial professional.

 

 

 

Published on February 15, 2007

Read full article at realestate.com

Featured Local Company

HomeTown Lenders - AUBURN

770-757-6481
724 N. Dean Road
Auburn, AL
www.hometownauburn.net


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