Mortgage Piggyback Loan Calculator

Piggyback structures avoid PMI by splitting financing into 1st + 2nd lien.

Home price

First mortgage %

Second lien %

First rate %

Second rate %

Term years

Total monthly P&I

$2,949

Down payment %

0.1%

First mortgage payment

$2,528

How the math works

First payment + second payment = total. Down payment = price × (1 − first − second).

$500k 80/10/10: $400k @ 6.5% = $2,528 + $50k @ 9.5% = $420 = $2,948 total P&I.

How to Use

Enter home price.
Enter first mortgage %.
Enter second lien %.
Enter first rate %.
Enter second rate %.
Enter term years.
Read total monthly p&i.

Frequently Asked Questions

Piggyback structures?

80/10/10: 80% first mortgage + 10% HELOC second + 10% down. Saves PMI but second lien rate is 1.5–4 points higher. 80/15/5: 80% first + 15% second + 5% down. Easier qualification than 20% down, no PMI but second lien is steep. 75/15/10 jumbo workaround: 75% first conforming + 15% second + 10% down (avoids jumbo rate premium on first). Total cost: usually 1–3% lower than 95% LTV with PMI. HELOC second can be paid off opportunistically.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.