ARTICLE: 80 10 10 Mortgage Loan Programs How Do They Work
Date Added: 2007-05-25
An 80 10 10 mortgage loan program is a type piggy back loan that borrowers will sometimes use to avoid paying private mortgage insurance. The fees on this type of mortgage insurance can be as high as 1percent of the total value of the property each year, and borrowers are eager to avoid the expensive monthly payments if possible.
Most banks or lending institutions will insist that a borrower take out private mortgage insurance of they do not have a deposit equal to 20 percent of the homes appraised value. If you can deposit this much, you will not need the expensive insurance, and additionally, once your repayments have contributed 20 percent of the homes value then you will no longer need to continue paying for the insurance.
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