Piggyback loans more costly in today's market

Most buyers better off with mortgage insurance, but exceptions exist

Get Smarter. Grow Your Referral Network.
Limited seating available for Inman Connect San Francisco

A piggyback is a second mortgage taken out at the same time as a first mortgage, as a way of borrowing a larger total amount. The first mortgage is for 80 percent of property value, and therefore does not require mortgage insurance, while the piggyback is for 5 percent, 10 percent, 15 percent or 20 percent of value. Instead of a mortgage insurance premium, the borrower pays a higher rate on the piggyback than on the first mortgage.