80/20 Mortgage

[Eugine]

The 80/20 mortgage means the borrower actually take out two loans. Other names for this mortgage include piggyback loan and 100% financing loans. One loan is for 80% of the money borrowed and the other loan is worth 20%, essentially what would be paid in a down payment. Loans may be offered through different companies, which means the borrower can be responsible for making payments to two different companies and for paying closing costs on two loans. Some lenders offered 103% financing which helped to meet theses costs.