Secrets most loan officers don't want you to know about Piggyback loans.
#PiggybackLoans. Here’s a dirty little secret: Most people don’t put down 20% when buying a home. Although there are plenty of articles that will scare you into thinking you can’t buy without a flush bank account, it’s simply not true. Here’s another secret: You have options. Buyers with less than 20% down can pay private mortgage insurance(PMI), choose a loan with a higher rate, or finance with a “piggyback” mortgage. The bad news? There isn’t a secret mortgage sauce. The best choice depends on your budget, your financial discipline, and your risk tolerance. Before making any big financial decisions, call me (617) 312 9744 to learn about available mortgage products that might suit your budget. What is a piggyback loan? Borrowers with a 5% to 15% down payment can finance their home purchase with two loans. The piggyback loan is a second lien behind their first mortgage. The first loan is a more traditional mortgage with an 80% loan-to-value ratio (LTV), while the second lien is a revolving line of credit in the form of a home equity loan. For more info about piggyback loans call today!