Piggyback Loan is a term used when someone gets a second mortgage at the same time as their first. Usually, this is used to avoid private mortgage insurance, higher interest rates, or having to take out a jumbo loan.
Who Would Benefit From A Piggyback Loan
Those who are looking to make a low down payment on their new home or trying to avoid monthly private mortgage insurance costs would benefit greatly from a piggyback loan.
Benefits of a Piggyback Loan
· Avoid paying for Private Mortgage Insurance
· Avoid Higher Interest Rates
· Avoid having to take out jumbo loans
· You could pay the second mortgage off early to avoid more interest
Disadvantages of a Piggyback Loan
· The second mortgage may have a higher interest rate than the first
· With private mortgage insurance, it can be canceled after your loan dips below 80% of your home value but piggyback loans are there until you fully pay them off
· You could run into trouble trying to refinance your mortgages
The Benefits of Getting a Loan From Tampa Bay Home Mortgage
· You are able to complete your application completely online with live help.
· Our home loan experts are available to chat via chat, email, and telephone to assist you
· Our great customer service continues even after you close
· You can manage your mortgage online after you close. Also, no hidden fees
Why Choose Tampa Bay Home Mortgage
Tampa Bay Home Mortgage is ready and willing to provide quality service to those in need. We treat each need in accordance to the person and their needs. Choose us today!