5 6 mortgage

5 6 mortgage
If you are a prospective home buyer with little or no down payment, there are options that you finance your purchase. Piggyback mortgages can be structured to make your down payment and closing costs. Here is what you need to know about our creative financing option .

Piggyback mortgages are sometimes referred to as a second mortgage or second trust loans. This loan in combination with your primary mortgage on the necessary windfall to buy your house while avoiding the evils of Private Mortgage Insurance (PMI). There are also 103% financing options to homeowners, the cash-strapped their closing costs.

Piggyback mortgages come in different heights, the most common variety is a 80/10 mortgage. This designation means that your primary mortgage covers 80 percent of the purchase price, your marketing piggyback mortgage covers 10 percent and you pay the remaining ten percent. This kind of piggyback mortgage is cheaper than financing the entire 20 percent deposit, but there are 80/20 loans for home buyers have not saved, that the remaining 10 percent. Another common variety of 80/15 piggyback mortgage is the mortgage, only you pay only 5 percent of the deposit.

The disadvantage of this type of financing is that you have two mortgage payments for each month, unless you find a lender willing to finance the entire amount. The advantage of the piggyback loan is that your monthly payments combined are still less than if you had for Private Mortgage Insurance, in order for your primary mortgage. Private Mortgage Insurance can easily add hundreds of dollars on your monthly mortgage payment and is not for you, the homeowner. You should avoid Private Mortgage Insurance at any price.

You can learn more about your mortgage options, including common mistakes to avoid by registering for a free mortgage guide.

To get your free mortgage guide RefiAdvisor.com visit the link below.

Louie Latour specializes in homeowners, such as advertisements, to identify common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need To Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.