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What Is a Piggyback Loan? What To Know If You're Looking For a Mortgage

If you're considering buying a home and you already own one, a piggyback loan may be a viable option. However, taking on a second mortgage isn't for everyone. Related: Grant Cardone: These Will Be the. ....

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What Is A Piggyback Loan?


KXLY
April 27, 2021 11:36 AM
Casey Bond - Forbes Advisor
Posted:
Updated:
April 27, 2021 7:23 PM
If you’re looking for a home but it’s out of your price range particularly in markets where housing prices are skyrocketing using a piggyback loan can help ease upfront costs.
A piggyback loan is actually a second loan after the first mortgage used to finance one property. It’s typically used to lower initial mortgage costs like a down payment or private mortgage insurance, which many lenders require on the first mortgage.
Most lenders prefer you have at least 20% of the home’s value saved for a down payment. However, it’s not always possible to have that much in cash (without hurting your savings), especially if home values are rapidly rising. ....

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What Is A Piggyback Loan?

What Is A Piggyback Loan?
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