Industry NewsMortgage

Piggyback loans threaten PMI industry

Insurers fight back with new products
Published on Sep 22, 2004

Watch Connect NYC 2017 Live
Tune in live as the best and brightest explain how to execute and grow your business from the main stage of Connect.

Newlyweds Michelle and Samuel Riccobono knew that without a 20 percent down payment for a house they'd face the added expense of private mortgage insurance. They weren't sure they could afford that.

A mortgage broker, however, showed the Philadelphia couple how they could avoid the cost of private mortgage insurance and cut their monthly payments: a piggyback loan. Instead of going with a 100 percent mortgage as they'd originally planned, they opted for an 80 percent first mortgage with a second mortgage for the remaining 20 percent "piggybacked" on ...

Comments