Piggyback Loan (80-10-10)
Lending & MortgagesA strategy using two loans simultaneously to avoid PMI — an 80% first mortgage, 10% second mortgage, and 10% down payment.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding piggyback loan (80-10-10) helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how piggyback loan (80-10-10) impacts your specific situation.