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.

References in periodicals archive ?

Consider a different case--that of a family who bought a $700,000 home with an 80-10-10 mortgage.

Negative equity--a novel solution: a growing number of homeowners are underwater on their mortgages. An idea to credit a greater share of monthly mortgage payments early on to principal, rather than to interest, could offer a solution

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.

A primer on the mortgage market and mortgage finance

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