The Second Trust (Piggyback) Loan Columbus 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 Columbus.

Local Companies

WR Starkey Mortgage, LLP - Chris McDonald
334-332-5252
1912 Opelika Rd
Phenix City, AL
Dms Mortgage Company
(706) 507-3412
2901 University Ave
Columbus, GA
After 5 Mortgage Company
(706) 507-2360
7000 Storage Ct
Columbus, GA
Superior Mortgage Serives Llc
(706) 478-8304
6751 MacOn Rd
Columbus, GA
Global Mortgage Inc
(770) 551-5146
1140 Hammond Dr NE
Atlanta, GA
First Interstate Mortgage Co
(706) 678-6310
311 Spring St
Washington, GA
AME Financial Corporation
(770) 449-8444
4036 Wetherburn Way
Norcross, GA
Irwin Mortgage Corporation
(770) 955-2744
400 Interstate Pkw N
Atlanta, GA
Realty Mortgage Co
(229) 888-5626
2535 Lafayette Dr
Albany, GA
Affinity Mortgage Company Inc
(912) 728-9164
147 Royal Oak Dr
Guyton, GA

provided by: 

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

WR Starkey Mortgage, LLP - Chris McDonald

334-332-5252
1912 Opelika Rd
Phenix City, AL


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