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Mortgages & Loans

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  4. What is a Piggyback Mortgage ?

What is a Piggyback Mortgage ?

A borrower takes a conventional 30-year loan for 80% of the loan amount. A second mortgage for 10% of the loan amount is taken simultaneously at a slightly higher rate. The idea is for the borrower to quickly pay off the second loan and leave the borrower with a fixed loan with no Purchase Mortgage Insurance (PMI).

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