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Piggyback Loan Calculator
A piggyback mortgage keeps the first loan at 80% LTV (PMI-free) with a second mortgage covering the gap. This calculator compares combined piggyback payments to a single loan with PMI to see which structure saves more.
conventional 80% no PMI
if single 90% LTV loan
Piggyback total monthly
$2,957
Single loan + PMI
$3,122
Piggyback monthly savings
$165
First loan payment
$2,549
Second loan payment
$408
Down payment
$48,500
How the math works
Piggyback loans split financing into two mortgages to keep the first at 80% LTV (PMI-free). Common structures: 80/10/10 (80% first + 10% second + 10% down) and 80/15/5 (for 5% down buyers). Compare against a single loan with PMI to see which wins monthly.
Piggyback second loans are typically HELOCs or closed-end seconds at higher rates than the first. Tax treatment: first mortgage interest deductible up to $750k; second interest only if used for acquisition/improvement. PMI is deductible for certain income levels. Model after-tax for apples-to-apples.
How to Use
- Enter purchase price.
- Set first mortgage LTV (usually 80%).
- Set second mortgage LTV (10% for 80/10/10, 15% for 80/15/5).
- Enter first and second rates.
- Enter alternative PMI rate for the single-loan comparison.
Frequently Asked Questions
Why use a piggyback?
To avoid PMI. A single 90% LTV loan charges PMI until the balance hits 78%, often taking 5-10 years. A piggyback keeps the first at 80% permanently, saving PMI throughout the loan.
When does PMI beat piggyback?
When the second mortgage rate is meaningfully higher than PMI. At today's rates, PMI of 0.3-0.5% often beats piggyback seconds at 9%+. Run the numbers for your specific rate situation.
Are piggybacks available everywhere?
Most markets but not all. Some lenders offer combined first+second at the same closing. HELOC as the second is more widely available. Jumbo piggybacks are common for loans above conforming limits.
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