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The Second Trust (Piggyback) Loan Mississippi

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 Mississippi.

Local Companies

Easy Money Emg
(601) 939-0262
401 Cross Park Dr
Pearl, MS

Shelby Mortgage Corporation
662-280-7730
917 Ferncliff Cove #5
Southaven, MS

FAIRWAY MORTGAGE
662-429-5100
224 West Commerce St
Hernando, MS

Mortgage Lending Group
601-664-9200
586 Lakeland Drive East Suite A
Flowood, MS

American General Financial Services
(601) 924-4602
602 Springridge Rd
Clinton, MS

BancorpSouth
(601) 925-4111
812 Highway 80 E
Clinton, MS

Bankplus
(601) 926-0003
217 Clinton Blvd
Clinton, MS

BancorpSouth
(601) 936-8400
2301 Highway 80 E
Pearl, MS

Navy
(601) 939-5916
15214 Crossroads Pkwy
Pearl, MS

Regions Mortgage Applications
(601) 960-2565
3101 Highway 80 E
Pearl, MS

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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

Easy Money Emg

(601) 939-0262
401 Cross Park Dr
Pearl, MS
http://www.cash30minutes.com

Read more about The Second Trust (Piggyback) Loan

- What You Need to Know About Private Mortgage Insurance Mississippi

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

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

Regional Articles

- Finding the Right Home Loan Mississippi

Weigh your options to find the right home loan for you.

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

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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