Piggy back loans:
If you don’t want to—or can’t afford to—put down at least twenty percent, you must pay mortgage insurance, called PMI. However, there is a way around this: taking out two loans. The first loan might be for 80 percent and the second loan for 10 percent. The second loan is likely to carry a higher interest rate, so many borrowers opt for a less traditional loan for the second mortgage to get the payment down. For instance, if you still own your current home, and want to go ahead and buy the next one, you can take a small balloon mortgage and then pay it off as soon as your current home sells.
