The Second Trust (Piggyback) Loan Chatsworth 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 Chatsworth.

Local Companies

Ampro Mortgage Corp
(404) 682-1827
5775 Peachtree Dunwoody R
Atlanta, GA
East West Mortgage Co
(770) 368-1488
4028 Holcomb Bridge Rd
Norcross, GA
Suntrust Mortgage
(912) 634-7928
Hinesville, GA
Premier Mortgage Funding
(678) 964-2210
2385 Wall St SE
Conyers, GA
Suntrust Mortgage
(478) 986-4403
189 W Clinton St
Gray, GA
1st Metropolitan Mortgage
(678) 964-2219
2385 Wall St SE
Conyers, GA
Bnb Mortgage Company
(678) 205-8899
Alpharetta, GA
Ace Mortgage Funding Inc
(678) 969-9688
Norcross, GA
Republic Mortgage Insurance
(770) 424-4347
1825 Barrett Lakes Blvd N
Kennesaw, GA
Global Mortgage Lending
(678) 714-9306
100 Wrights Mill Pl
Buford, 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

Cummings Mortgage Co.

706-295-7165
111 Bridgepoint Plaza Ste 302
Rome, GA
cmymortgage.com


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