Forgotten Your Password?

Need to Register?

Question Icon

Does the overall interest on a piggyback mortgage cost more than paying pmi?

by Sherri.Thurow877 from Estes Park, Colorado. May 2nd 2014 Reply


Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Almost all, if not all, piggyback mortgages by commercial lenders died, with the collapse of the mortgage market in 2008. If you are offered a piggy by a seller or other lender, comparison of cost to you vs. PMI or MMI, will depend on the terms of the piggy, and rules and regulations of the first mortgage lender.

May 2nd 2014
0
0
Brian Neuwirth (Bneuwirth)
#49 ranked lender in Colorado - 28 contributions

Purchase money seconds (piggyback) are few and far between in todays market but they still exist. The only difference is current market limits the Combined loan to value @ 90-95% vs. pre market collapse of 100%. You need to look at the total payment on a single loan this includes principal, interest, taxes, insurance, and PMI. vs. the total payment(s) of the first and second. Typically speaking the cost of the a single loan is typically lower as the interest rate on second mortgages are typically higher. Let me know if there is anything else I can answer for you.

May 2nd 2014
0
0
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,232 contributions

I agree, it really depends on the terms of the 2nd (piggyback) mortgage. Your monthly payment will likely be higher and most of my customers choose the PMI route instead. PMI is also less complicated for the approval process. Pick an experience and thorough mortgage officer to work with and let them advise you. I can help: pdumouchel@primelending.com or 843-619-6025 http://pdumouchel.primelending.com **PrimeLending was the #4 purchase mortgage lender in the US in 2012 and 2013 as determined by MarketTrac(c) for Jan-Dec 2012 & 2013

May 2nd 2014
0
0
Mike Silkworth (msilkw_195_870)
#30 ranked lender in Michigan - 527 contributions

It will vary in every situation. The best way to find out is to talk to a Local Lender that can review your mortgage. It would be a good idea to think about what your goals are and discuss them with your lender. The reason I say this is because your question suggests only (2) options, there are more: including, but not limited to re-structuring your PMI. Look for someone experienced. I sign that you are talking to the right lender is if they ask you questions about your financial goals rather than simply trying to re-finance you. Your current loan may be the best for you and your best move may be NO move.

May 4th 2014
0
0
Subscribe to our news feed.