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.
References in periodicals archive ?
Consider a different case--that of a family who bought a $700,000 home with an 80-10-10 mortgage. The 80 refers to the 80 percent LTV of the first mortgage.
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.