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The Second Trust (Piggyback) Loan Kentucky

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 Kentucky.

Local Companies

Webmyne
0235464
Hopkinsville
Kentucky, KY

Summit Mortgage Company Of The Bluegrass
859-219-9060
1718 Sharkey Way Suite 200
Lexington, KY

Priority Mortgage Associates, LLC
270-763-8111
2832 Shepherdsville Rd.
Elizabethtown, KY

Wells Fargo Home Mortgage
(859) 745-0733
114 S. Maple St
Winchester, KY

A+ Credit, LLC
502-459-2222
3801 Springhurst Blvd.
Louisville, KY

The Cecilian Bank
270-737-3750
2633 Leitchfield Rd
Elizabethtown, KY

Residential Mortgage Services
859-252-5626
191 Kentucky Avenue
Lexington, KY

Liberty Mortgage of Ky, Inc.
502-425-8585 ex1
13121 Eastpoint Park Blvd
Louisville, KY

KEY FINANCIAL MORTGAGE
502.644.8008
107 South Hurstbourne Ln.
Louisville, KY

Mymortgagepro
859-293-0411
1084 E. New Circle #200
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

Webmyne

0235464
Hopkinsville
Kentucky, KY
http://www.theloansstore.com/

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Regional Articles

- Low down payment? A piggyback loan or PMI can help Kentucky

Sans a 20-percent down payment, you'll need to pay for either a second loan or lender's mortgage insurance.

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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