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Mortgage Glossary

Piggyback Loan

Mike Starr·Reviewed August 2026

A piggyback loan is a second mortgage taken out simultaneously with a first mortgage, typically to avoid paying PMI on a conventional loan. The most common structure is an 80-10-10: an 80% first mortgage, a 10% second mortgage (HELOC or home equity loan), and a 10% down payment. The second loan "piggybacks" on the first, eliminating the need for mortgage insurance.

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