Finance
In Massachusetts, a 'piggyback loan' (also called an 80/10/10 mortgage) allows a buyer to:
AFinance 100% of the purchase price
BAvoid PMI by taking a first mortgage of 80%, a second mortgage of 10%, and putting down 10%✓ Correct
CShare the mortgage with another buyer
DRefinance immediately after closing
Explanation
An 80/10/10 piggyback loan has a first mortgage for 80% of the price, a second mortgage for 10%, and a 10% down payment. This allows the buyer to avoid PMI (which kicks in when LTV exceeds 80% on the first) while putting less than 20% down.
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