Piggyback loans threaten PMI industry 

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.

more...

To view this premium content sign in to your Premium Member account.

Premium Members have full access to all news archives & premium content.

Purchase Professional Membership for $199/year OR
Premium+ Membership for $149/year OR
News Membership for $69/year

Buy Now

Advertise with Inman

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.