Piggyback Mortgage Law and Legal Definition
Piggyback mortgage is a package of two loans where one is added on top of the other. It is usually done to avoid paying for private mortgage insurance or PMI, which is usually required for a loan for more than 80% of the property value. A first mortgage covers 80% of the value of the property and a second loan which covers 10%, 15% or even the whole remaining 20% of the value of the home. In other words, it is a type of mortgage where a second mortgage or home equity loan is taken out by a borrower at the same time the first mortgage is started or refinanced. Thus the second loan is said to be piggybacked on the first loan..
