A
loan for a portion of the
value of a home over and above the traditional
mortgage. In general, one must have a 20%
down payment to purchase a home and one
finances the remaining 80%. A piggyback loan allows one to
borrow at least a portion of the remaining 20% (though at a higher
interest rate than the remainder of the mortgage). A piggyback loan is an alternative to
private mortgage insurance. It may allow more people to purchase their own homes.