Definition of PIGGYBACK: When a couple of companies take upon a business loan, it is known as ‘piggyback’. Similarly, if a company releases its stocks to the public, an investor The Law Dictionary Featuring Black’s Law Dictionary free online legal Dictionary 2nd Ed.
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A piggyback loan is basically a second mortgage that they give you at the time of a home purchase or refinance. These types of loans allow you, the home buyer, acquire or refinance a home with less than a 20 percent down payment or equity. One advantage to this style of loan is that the homebuyer isn’t required to carry private mortgage.
Piggyback loans combine a 1st mortgage (usually 75 – 80% of the appraised value, to avoid PMI), with a “piggyback” 2nd mortgage (usually 10%, 15%, 20% or 25% of the appraised value). Both loans are closed at the same time, and through the same lender (at least in our case).
A “piggyback” second mortgage is a home equity loan or home equity line of credit (HELOC) that is made at the same time as your main.
Piggyback loan example. Two sisters, Ruth and Sharon, purchase a condominium located out of town. Because of its great location, units are expensive and they don’t have the $26,000 deposit.
Recent Examples on the Web: Noun. In a legal declaration, a deputy city attorney noted that she was being carried piggyback on the way to a dance club just before midnight. – Emily Alpert Reyes, latimes.com, "L.A. to pay up to $3 million to settle suit from woman injured in fall on sidewalk," 18 Apr. 2018 From private lenders, a piggyback loan is another common way to lower the cost of a.
The piggyback loan, also called a tandem loan, combo or a blended rate mortgage combines a first mortgage and a second mortgage. The piggyback loan is used for eliminating the private mortgage insurance premium when the down payment is less than 20% for a "conventional" mortgage.