Brandon Finance and Business Blog » piggyback http://www.imbrandon.com Welcome to Brandon Business Consultan Wed, 28 Dec 2011 19:35:24 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Piggyback Loans http://www.imbrandon.com/credit-and-debt/piggyback-loans/ http://www.imbrandon.com/credit-and-debt/piggyback-loans/#comments Sat, 19 Dec 2009 21:19:46 +0000 Brandon http://www.imbrandon.com/?p=214

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Definition: In most instances, piggyback loans represent 100% mortgage financing, meaning the buyer has chosen to not put down any money but to finance the entire purchase price. A typical piggyback situation is an 80% first mortgage and a 20% second mortgage. If the buyer put down 5%, the first mortgage would still be 80%, and the second mortgage balance would be 15%.
Also Known As: Combo or combination loans

Alternate Spellings: Piggy-back loans
Common Misspellings: Piggie back loans

Examples:
To reduce his monthly payments, Dweezil financed an 80% first mortgage with an adjustable interest rate and he obtained a 20% second mortgage that was payable interest only. Let's hope that Dweezil doesn't lose his job any time soon.

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