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The Second Trust (Piggyback) Loan New Jersey

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 New Jersey.

Local Companies

Charter Mortgage Bank
(973) 353-6216
1 Gateway Ctr
Newark, NJ

Eastwest Mortgage
(201) 209-6406
1 Exchange Pl
Jersey City, NJ

OPTISCORE, LLC
917 8868832
45 RIVER DRIVE SOUTH
JERSEY CITY, NJ

Intercounty Mortgage
908-208-0431
3400 Highway 35
Hazlet, NJ

Quest Consultants
609-677-9858
3105 Jasmine Court
Mays Landing, NJ

Mortgage First Direct
973-763-4000 ex 24
1923 Springfield Ave
Maplewood, NJ

Heritage Mortgage Bank Corp. 2
(973) 539-9878
25 Lindsley Drive
Morristown, NJ

Heritage Mortgage Bank Corp. 1
(732) 485-7105
333 River Street
Hoboken, NJ

U S Mortgage Corp
(973) 491-0048
120 Van Buren St
Newark, NJ

Countrywide Home Loans
(973) 642-0232
60 Park Pl
Newark, NJ

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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

Charter Mortgage Bank

(973) 353-6216
1 Gateway Ctr
Newark, NJ

Read more about The Second Trust (Piggyback) Loan

- What You Need to Know About Private Mortgage Insurance New Jersey

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

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

Regional Articles

- Why Zero Down Payment Loans Can Be Risky New Jersey

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

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

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