The Second Trust (Piggyback) Loan Ashland KY

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 Ashland.

Local Companies

Eagle Nationwide Mortgage Company
304-521-2004
414 11TH Street, Suite 102
Huntington, WV
GMAC Mortgage Corp
(270) 842-3320
600 Corvette Dr
Bowling Green, KY
Tri Star Mortgage Lending
(502) 223-2533
100 Consumer Ln
Frankfort, KY
Gulf American Mortgage
(502) 292-1115
Louisville, KY
Allied Home Mortgage Capital
(859) 624-1442
2161 Lexington Rd Ste 8
Richmond, KY
Kentucky Mortgage Co
(502) 452-9006
6200 Dutchmans Ln
Louisville, KY
Linville Mortgage
(859) 623-4909
2150 Lexington Rd
Richmond, KY
Primary Residential Mortgage Inc
(502) 671-5449
3240 Office Pointe Pl
Louisville, KY
Key Mortgage Co Inc
(270) 384-1735
203 Burkesville St
Columbia, KY
Allied Home Mortgage Co
(859) 263-2008
3280 Blazer Pkwy
Lexington, KY

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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

Eagle Nationwide Mortgage Company

Call us today toll free 877-248-6890 and apply for a low fixed rate or apply online at www.wv-mortgageloan.com

304-521-2004
414 11TH Street, Suite 102
Huntington, WV
www.wv-mortgageloan.com

Eagle Nationwide Mortgage Company West Virginia Home Loans

Though we are nationwide, we specialize in home lending right here in our own back yard. Our staff are all long term residents of West Virginia. This is our community, and we want to see it grow and prosper. Our West Virginia mortgage programs are designed to assist homeowners and homebuyers get the right loan for them.

The West Virginia USDA Loan is a perfect fit for West Virginia homebuyers. It's helping increase homeownership in rural areas and has many benefits.

No down payment
No PMI
102% of the appraised value
No reserve requirements
620 Score with little weight given to past credit
Low Fixed Rates
Our West Virginia FHA loans are one of the most popular of our mortgage programs.

96.5% Loan to Value
Down Payment can come from a gift
580 Credit score for purchase
560 Credit Score for Refinance
Some programs allow for Non-Occupying Coborrowers
Historically low interest rates
We also offer Fannie Mae and Freddie Mac conventional loans at superior rates.

It's important to us that our community benefits from all of the wonderful programs available. We want to make sure that these mortgage programs help our friends here in West Virginia secure the best mortgage loan they can.


http://www.wv-mortgageloan.com


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