80-10-10 mortgage

80-10-10 mortgage

A type of mortgage arrangement with 80 percent of the purchase price paid by a first mortgage, 10 percent paid by a second mortgage, and the final 10 percent in down payment; sometimes used in order to avoid having a 90 percent first mortgage and the required private mortgage insurance premiums.
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For example, the borrower may have an 80-10-10 mortgage, indicating that 80 percent of the loan is financed by the first mortgage, 10 percent is financed by a second mortgage, and 10 percent is a down payment.