Home Buyers with a 10% down payment can avoid mortgage insurance.
Local Lenders in the New Orleans area are now offering several “piggyback” loan options that allow you to avoid mortgage insurance with a down payment as little as ten percent.
Benefits of a Piggyback Mortgage:
- Avoid mortgage insurance
- Avoid JUMBO rate pricing
- No closing costs on the 2nd mortgage
How it works: The mortgage is split into two loans, a 1st mortgage and 2nd mortgage closed simultaneously.
- $250,000 sales price:
- 1st Mortgage with EUSTIS Mortgage= $200,000
- 2nd Mortgage with Whitney Bank= $25,000
- Borrower puts down $25,000 (10% down payment)
This avoids mortgage insurance estimated at: $97.50 per month. (may vary depending on exact loan amount and credit score).
Other benefits may include avoiding JUMBO rate pricing by keeping the 1st mortgage at the max conforming loan amount of $417,000.
Currently rates on the second mortgage are being offered as low as 2.99% for the first 6 mos. then 3.99% variable for the remaining term.
For more information or to see if you qualify, get pre-approved with one of our mortgage lending partners today.