All Topics > Real Estate Resources > Financing > Special Mortgage Programs > The Second Trust (Piggyback) Loan >

The Second Trust (Piggyback) Loan Minnesota

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 Minnesota.

Local Companies

Acme Mortgage Corp
(763) 566-1669
5701 Shingle Creek Pkwy
Minneapolis, MN

Wells Fargo Home Mortgage - Bloomington
(612) 316-2952
7900 Xerxes Ave. S.
Bloomington, MN

MFG Mortgage Services
(612) 766-9000
901 Marquette Ave. S., Ste. 2680
Minneapolis, MN

Wells Fargo Home Mortgage - Minneapolis
(612) 752-5761
733 Marquette Ave., Ste. 203
Minneapolis, MN

Advisors Mortgage
952-484-8875
2121 Cliff Drive
Eagan, MN

1st Metropolitan Mortgage
651-770-2033
2399 Ariel St N
St. Paul, MN

M&I Bank
612-798-3339
6625 Lyndale Av. S.
Minneapolis, MN

Kraus-Anderson Mortgage Company
(612) 332-7281
523 South Eighth St.
Minneapolis, MN

Advisor Mortgage Services LLC
(612) 378-7016
43 Main St SE
Minneapolis, MN

Amcap Mortgage & Financial Inc
651-747-1420
6993 35th St N
St. Paul, MN

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

Acme Mortgage Corp

(763) 566-1669
5701 Shingle Creek Pkwy
Minneapolis, MN

Read more about The Second Trust (Piggyback) Loan

- Why Zero Down Payment Loans Can Be Risky Minnesota

A down payment can help to reduce the risks of homeownership.

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

Regional Articles

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

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

- What to think about when you're buying a home Minnesota
- What You Need to Know About Private Mortgage Insurance Minnesota
- Finding the Right Home Loan Minnesota
- Interest Only Mortgage Minnesota
- Buying Commercial Real Estate Minnesota
- Why Zero Down Payment Loans Can Be Risky Minnesota
- Top Six Down Payment Mistakes Minnesota
- Pulling Together a Down Payment Minnesota
- Do I have to have private mortgage insurance Minnesota

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

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