The Second Trust (Piggyback) Loan Connecticut

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 Connecticut.

Local Companies

SETTLERS MORTGAGE COMPANY LLC
(203) 227-2422
Evergreen Parkway
Westport, CT
A STRAIGHT TO THE POINT FINANCING
(203) 576-6877
242 GODDARD AVENUE
BRIDGEPORT, CT
Founders Home Capital Corporation
860-667-1321
75 Johnson St
Newington, CT
William Pitt Sotheby's International Realty
203-245-6700
670 Boston Post Road
Madison, CT
WPI
860-656-7671
Silas Dean Hwy
Wethersfield, CT
Joanna Martin/Coldwell Banker
203-453-4477
226 East Main Street
Branford, CT
North Atlantic Mortgage Corp.
877-794-5363
1011 High Ridge Road
Stamford, CT
Scholastic Mortgage
203-453-5555
96 Broad Street
Guilford, CT
Wells Fargo Home Mortgage
203-458-0140
125 Water Street
Guilford, CT
Coldwell Banker Coast & Country
203 458-4100
1250 Boston Post Road
Guilford, CT

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

SETTLERS MORTGAGE COMPANY LLC

(203) 227-2422
Evergreen Parkway
Westport, CT

Regional Articles
- The Second Trust (Piggyback) Loan Ansonia CT
- The Second Trust (Piggyback) Loan Bethel CT
- The Second Trust (Piggyback) Loan Branford CT
- The Second Trust (Piggyback) Loan Bridgeport CT
- The Second Trust (Piggyback) Loan Bristol CT
- The Second Trust (Piggyback) Loan Cheshire CT
- The Second Trust (Piggyback) Loan Danbury CT
- The Second Trust (Piggyback) Loan East Hartford CT
- The Second Trust (Piggyback) Loan East Haven CT
- The Second Trust (Piggyback) Loan Enfield CT
- The Second Trust (Piggyback) Loan Glastonbury CT
- The Second Trust (Piggyback) Loan Greenwich CT
- The Second Trust (Piggyback) Loan Groton CT
- The Second Trust (Piggyback) Loan Guilford CT
- The Second Trust (Piggyback) Loan Hamden CT
- The Second Trust (Piggyback) Loan Hartford CT
- The Second Trust (Piggyback) Loan Manchester CT
- The Second Trust (Piggyback) Loan Meriden CT
- The Second Trust (Piggyback) Loan Middletown CT
- The Second Trust (Piggyback) Loan Milford CT
- The Second Trust (Piggyback) Loan Naugatuck CT
- The Second Trust (Piggyback) Loan New Britain CT
- The Second Trust (Piggyback) Loan New Canaan CT
- The Second Trust (Piggyback) Loan New Haven CT
- The Second Trust (Piggyback) Loan New London CT
- The Second Trust (Piggyback) Loan Newington CT
- The Second Trust (Piggyback) Loan North Haven CT
- The Second Trust (Piggyback) Loan Norwalk CT
- The Second Trust (Piggyback) Loan Norwich CT
- The Second Trust (Piggyback) Loan Plainville CT
- The Second Trust (Piggyback) Loan Ridgefield CT
- The Second Trust (Piggyback) Loan Rocky Hill CT
- The Second Trust (Piggyback) Loan Shelton CT
- The Second Trust (Piggyback) Loan Simsbury CT
- The Second Trust (Piggyback) Loan South Windsor CT
- The Second Trust (Piggyback) Loan Southbury CT
- The Second Trust (Piggyback) Loan Southington CT
- The Second Trust (Piggyback) Loan Stamford CT
- The Second Trust (Piggyback) Loan Storrs Mansfield CT
- The Second Trust (Piggyback) Loan Stratford CT
- The Second Trust (Piggyback) Loan Torrington CT
- The Second Trust (Piggyback) Loan Trumbull CT
- The Second Trust (Piggyback) Loan Vernon Rockville CT
- The Second Trust (Piggyback) Loan Wallingford CT
- The Second Trust (Piggyback) Loan Waterbury CT
- The Second Trust (Piggyback) Loan West Hartford CT
- The Second Trust (Piggyback) Loan West Haven CT
- The Second Trust (Piggyback) Loan Westport CT
- The Second Trust (Piggyback) Loan Wethersfield CT
- The Second Trust (Piggyback) Loan Willimantic CT
- The Second Trust (Piggyback) Loan Wilton CT
- The Second Trust (Piggyback) Loan Windsor CT
- The Second Trust (Piggyback) Loan Winsted CT
- The Second Trust (Piggyback) Loan Wolcott CT

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History