7/08/2005

"Piggyback" Loans have increased 20% since 2001

Second mortgages, also known as lender seconds, have made the West coast prices more affordable by allowing a buyer to put down a lower down payment. Another advantage is that the interest on a second mortgage, like the first, is tax deductible. Not so with PMI when the down is less than 20%. 42 percent of loans involved seconds in early 2004. PMI carriers are critical of these loans, not surprisingly, however the cost to the consumer is ultimately more using PMI. Click here for C.A.R's article.

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