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80-10-10 Piggyback Mortgage Loans

A piggyback mortgage loan, officially known as an 80-10-10 loan, is a great way to save money on buying a home, and at LBC Mortgage, we’re here to help you make sense of piggyback loans and how to understand if choosing one is the best to help you buy a home in the State of California.

What is a Piggyback Mortgage?

Simply put, a piggyback mortgage is when you take out two separate loans for the same home. The first mortgage is usually 80% of the home’s value with the second one being for 10%, with the remaining 10% being your down payment amount — hence the name 80-10-10 loan. You might also see the latter two amounts adjusted, so it’s entirely possible to get a loan that’s something like 80-15-5 or 80-5-15 with the first number being the primarily loan, the second number being the amount of the second loan, and the third being your down payment amount.

Why Get a Piggyback Loan?

A piggyback loan is generally used to help prospective homeowners avoid the need to pay extra for private mortgage insurance. In short, private mortgage insurance or PMI is the insurance policy that lenders require you to take out if you’re putting less than a 20% down payment down on the home. In this way, the lender is able to recoup the money they’ve lost if you default on your home loan.
So that begs the question of whether or not an 80-10-10 loan or private mortgage insurance is better in your case. For that, it’s a good idea to consult with a professional who understands the details of different types of home loans and who can help you find the best option for your unique needs.

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Client Reviews

LBC Team went above and beyond to help us buy our new home! They were available for all of our questions, were prompt in their replies to us, and guided us...
Julia T.
Julia T.
08:40 22 Aug 21
Excellent team of great professionals! Superb customer service! They have successfully handled our purchase and refinance in a very short period of time,...
Elina L.
Elina L.
11:12 30 Jun 21
It is hard to describe how scary we were when decided to buy a house. We had no knowledge of the processing, prices, policies, calculations… When our agent referred us to Alex Shekhtam, from the first phone consultation we felt to be just in right hands. We are so blessed to have LBC Mortgage team! Our first house was purchased just because of these hardworking, reliable, efficient, responsive professionals! Recently we were able to refinance our house on good conditions, again, just because of them! Easy processing paperwork, knowledgeable advisors, pleasant communication make you feel special. We are so grateful to all and everyone from LBC Mortgage for making our dreams true!!!!
Lora Kochetkova
Lora Kochetkova
03:44 29 Jun 21
LBC Team is now our Number One Team! Their service was impeccable! We really appreciated the detailed explanations and daily reminders throughout the whole...
Galina S.
Galina S.
13:34 29 Mar 21
We were able to close on our first home even with a strict budget, and I credit it all to Alex and the staff at LBC Mortgage. We couldn’t have done it without you. Thank you so much!
Roger Billon
Roger Billon
06:07 25 Mar 21
Alex and his team were very attentive to our needs. We had some very specific criteria when looking for a home, and most mortgage companies, especially banks, were not even willing to listen to us -- but the team at LBC Mortgage was. They kept everything moving and were happy to answer our questions. We never felt like a burden to them, and that’s how customer service should be.
Kaylani paliotta
Kaylani paliotta
05:51 25 Mar 21
This was one of the last steps I needed to do in order to close on a home, and I had been putting it off because I had assumed it was a complicated and cumbersome process. I could not have been more wrong. Alex and everyone at LBC Mortgage made the process really simple and straightforward. Excellent company with people that really care about you.
Charles W
Charles W
06:52 23 Mar 21
If you are shopping online for mortgage or refinance, look no further. Seamless process and good communication. I am pleased with their fast response. They kept me updated with each phase of a process. Thank you LBC Mortgage.
Christiane BABINOT
Christiane BABINOT
07:40 03 Mar 21
People often ask me who I use for my own mortgages and refinances. Every time I recommend LBC Mortgage. They’re always working hard to stay one step ahead of the competition. To me, they’re more like family than my mortgage company. I’ve just closed my third deal with them and I can’t wait to see what the future holds.
Ahndray Hamilton
Ahndray Hamilton
09:06 18 Feb 21

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Piggyback Mortgage or Private Mortgage Insurance?

A piggyback mortgage makes sense in cases where you’ll be borrowing a substantial amount of money, such as with a jumbo loan. Sometimes, jumbo loan borrowers will get another mortgage because they can take advantage of the lower interest rate on their first loan. They can then pay off the second loan faster and save money over time on interest payment. Plus, you can deduct the interest you pay on both loans from your taxes. Just keep in mind that there’s a limit on the second amount, up to the first $100,000. Still, any savings is better than none!

How Do I Qualify for a Piggyback Loan?

Remember that with piggyback mortgage loans, you’re actually applying for two loans at one time. You’ll want to make sure that you have a credit score of 680 or higher, as well as a debt-to-income ratio that’s no higher than 43% when the costs of both loans are considered.

Understandably, you want the interest rates of both loans to be as low as possible. That’s why it’s a great idea to work with a specialty mortgage company like LBC Mortgage. Our knowledgeable, friendly and helpful experts will take the time to walk you through the process, as well as answer any questions you may have along the way. When it comes to 80-10-10 loans or any other type of home loan, the professionals at LBC Mortgage work hard to help you get the best deal so that you can save time and money and get a home loan that works hard for you!

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