Shopping around for a home loan?
Ready to learn more about piggyback home loans and if borrowing one is the right choice for you?
What Is a Piggyback Loan?
Lets crunch some numbers as an example.
Say you want to buy a home for $300k.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Some experts claim this number can even go up to 1.86% per year.
This might sound insignificant, but lets crunch some numbers to really see what it might actually cost you.
This would put your loan amount at roughly $270k.
Heres what various PMI payments might look like on a loan this size.
A previous version of this post used incorrect figures in the chart.
It has been updated.
As the numbers will show, PMI is clearly nothing to scoff at.
Did you know?
After all, if piggyback mortgages are so convenient, why dont more people get them?
Theres also repayment to consider.
Finally, youll want to confirm yourdebt-to-income ratiois within a reasonable range before approaching lenders.
Contributor Larissa Runkle specializes in finance, real estate and lifestyle topics.
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