When you want to purchase a house, coming up with a down payment can be a huge issue. If you are struggling to manage money for a down payment, then you should know about the meaning of a piggyback loan as well as a piggyback loan calculator.
Well, a piggyback loan is an additional debt that can include any additional loan or mortgage beyond a borrower’s 1st mortgage loan that’s secured with the same collateral.
The purpose of a piggyback loan is to let borrowers with low down payment savings borrow some money to be eligible for the main mortgage without paying for private mortgage insurance.
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Advantage:It is useful if you are selling your house. If you’re selling one house and purchasing another one, then it might be difficult to afford a 20 percent down payment on the new house if your original one has not sold yet. A piggyback loan can offer those funds until the house sells.
Disadvantage:You will have 2 mortgage payments. Until you pay off the 2nd mortgage (which generally has a shorter term than the 1st one), then you’ll be making two payments monthly. So, you should check whether you can fit this into your monthly budget.
Click on This Link to Check Out a Piggyback Calculator Here
I am not sure whether this concept of piggyback loan is popular in India.
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Read more:
How Does Home Loan Work in India
What is Home Loan Process
I hope now you know about the piggyback loan calculator.
Authors Of The Question
What is a piggyback loan?
Naman
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2 Year
2022-06-22T17:57:38+00:00 2022-06-22T18:18:34+00:00Comment
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