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The Second Trust (Piggyback) Loan Georgia

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 Georgia.

Local Companies

Capitol City Bank & Trust Company
(404) 752-6067
562 Lee St SW
Atlanta, GA

A & C Mortgage LLC
(678) 822-0400
3042 Oakcliff Rd
Atlanta, GA

AAA Direct Mortgage
(770) 448-7796
3955 Pleasantdale Rd
Atlanta, GA

Cummings Mortgage Co.
706-295-7165
111 Bridgepoint Plaza Ste 302
Rome, GA

Countrywide Mortgage Corporation
770-414-6600
100 Colony Square, 1175 Peachtree St.
Atlanta, GA

Novation Mortgage
678-698-3557
2501 E. Piedmont Road
Marietta, GA

Option 1 Finanical
678-232-0828
2380 Buford Dr Suite 106-328
Lawrenceville, GA

1st American Capital LLC
(404) 588-5500
191 Peachtree St Ne
Atlanta, GA

American Equity Mortgage
770-955-5700
200 Galleria Pkwy SE
Atlanta, GA

Allied Home Mortgage Capital Corp.
770-939-7075
2179 Northlake Pkwy
Tucker, 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

Capitol City Bank & Trust Company

(404) 752-6067
562 Lee St SW
Atlanta, GA

Read more about The Second Trust (Piggyback) Loan

- What to think about when you're buying a home Georgia

Answer these questions and be sure you're making sound financial decisions.

- Low down payment? A piggyback loan or PMI can help Georgia
- Buying Commercial Real Estate Georgia
- Interest Only Mortgage Georgia
- What You Need to Know About Private Mortgage Insurance Georgia
- Pulling Together a Down Payment Georgia
- Why Zero Down Payment Loans Can Be Risky Georgia
- Finding the Right Home Loan Georgia
- Top Six Down Payment Mistakes Georgia
- Do I have to have private mortgage insurance Georgia

Regional Articles

- Interest Only Mortgage Georgia

An interest only mortgage is one type of home loan you can obtain. Here are the steps on how to get this type of loan, and most importantly, to decide if this loan structure right for you.

- Why Zero Down Payment Loans Can Be Risky Georgia
- Low down payment? A piggyback loan or PMI can help Georgia
- What You Need to Know About Private Mortgage Insurance Georgia
- What to think about when you're buying a home Georgia
- Do I have to have private mortgage insurance Georgia
- Buying Commercial Real Estate Georgia
- Finding the Right Home Loan Georgia
- Top Six Down Payment Mistakes Georgia
- Pulling Together a Down Payment Georgia

Related Local Event

2Nd Annual Real Estate Industry Day
Dates: 9/18/2009 - 9/18/2009
Location: Holiday Inn Decatur
Decatur, GA
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