A second mortgage is one with a second-priority claim against a property in the event that the borrower defaults. The lender who holds the second mortgage gets paid only after the lender holding the first mortgage is paid. A second mortgage that is taken out at the same time as the first mortgage, in order to avoid private mortgage insurance, is called a “piggyback.” Read Mortgage Piggybacks in a Stressed Market.
Mortgage Piggyback Calculator: Two Mortgages Versus One Larger Mortgage.
For borrowers trying to decide whether they should take a second mortgage to avoid mortgage insurance or the higher interest rate on a larger first mortgage.
Mortgage Piggyback Calculator: Comparing Two Piggybacks.
For borrowers trying to decide between two piggyback combinations.