After the recent financial and housing crisis, getting piggyback loans has become very hard. The standard 80-10-10 structure (80% first mortgage, 10% piggyback loan and 10% down payment) is no longer offered in many states.
What are your options, then?
One approach is to simply take the 90-10 loan (90% first mortgage and 10% down payment). You either have to pay for private mortgage insurance (PMI) or accept a bit higher interest rate. Incidentally, the higher interest rate is tax-deductible, while PMI cost isn’t, so be careful about making direct comparisons.
With a good credit, you may even qualify for mortgage insurance paid by the lender.
You have to also think carefully about whether you’re going to keep 90-10 for a long period, or repay 10% in a few years. If the latter, you should ensure that your mortgage has no prepayment penalties.
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