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The Second Trust (Piggyback) Loan Massachusetts

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 Massachusetts.

Local Companies

JPMorgan Chase - Home Mortgage
(617) 429-2059
400 Blue Hill Drive, Ste. 190
Westwood, MA

Pioneer Financial Group
(617)8686300
1972 Massachusetts Avenue
Cambridge, MA

Omnify Software
978-988-3800
10 New England Business Center Drive
Andover, MA

First Call Mortgage Company
603-247-2885
100 Brickstone Square
Andover, MA

Emerson Lending
978-264-4803
179 Great Road
Acton, MA

American Honda Finance Corp
(413) 567-0844
171 Dwight Rd
Longmeadow, MA

MetLife Home Loans
508-667-2981
586 Kelly Boulevard
N. Attleboro, MA

SB Mortgage Group Inc
508-407-5430
206 Southbridge St
Auburn, MA

American Mortgage Resource, Inc.
(617)9728588
62 Mount Auburn Street
Watertown, MA

First Eagle Mortgage
978-777-7767
44 Maple Street
Danvers, MA

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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

JPMorgan Chase - Home Mortgage

(617) 429-2059
400 Blue Hill Drive, Ste. 190
Westwood, MA

Read more about The Second Trust (Piggyback) Loan

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

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

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

Regional Articles

- What You Need to Know About Private Mortgage Insurance Massachusetts

PMI lets you buy a house with less than 20 percent down -- in exchange for higher payments.

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

Related Local Event

Urban Land Institute Spring Council Forum
Dates: 4/14/2010 - 4/16/2010
Location: John B. Hynes Veterans Memorial Convention Center
Boston, MA
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