Mortgage Piggyback Loan Guide for 80-10-10 Strategy (2026)
Understand piggyback loans: 80-10-10 mortgage, avoid PMI, second mortgage, and piggyback loan structure.
Summary
Piggyback loans combine first and second mortgages to avoid PMI. This guide explains 80-10-10 structure and costs.
Key Steps
- 1Structure: 80% first mortgage, 10% second mortgage, 10% down payment.
- 2Avoid PMI: second mortgage replaces PMI requirement for <20% down.
- 3Second mortgage: higher rate, often adjustable or HELOC style.
- 4Compare costs: calculate if piggyback saves vs PMI over expected holding period.
- 5Refinance option: can refinance second mortgage when equity reaches 20%.