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80/10/10 · PMI vs. second lien

A piggyback mortgage calculator for broker websites: combo loan or one loan with PMI?

The calculator splits a purchase into a first mortgage at the PMI-free threshold plus a second mortgage, then compares that pair's payment with one loan carrying PMI. It returns both payments, the monthly difference and each loan amount, which tells you whether a combination structure is worth quoting for this buyer.

A buyer comparing piggyback financing with PMI already has a down payment, a target price and a reason to talk to someone who can price both sides.

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Start free on Originator What the numbers tell you about the borrower
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Loan Programs & Specialty

What is the buyer weighing when they compare a combo loan with PMI?

They have saved something like 10% and have been told two things: that PMI is money wasted, and that a second mortgage can make it go away. Both claims are half true, and they want to see the actual numbers.

On a $500,000 home with 10% down, a first mortgage at 6.75% and a second at 8.75% come to roughly $2,988 a month together, against about $3,125 for one loan with PMI at 0.55%. That gap is real but smaller than many buyers expect. Their underlying worries are cash to close, whether the second loan's higher rate eats the savings, and how hard it will be to get rid of either cost later.

How does a combination mortgage calculator earn its spot in your funnel?

Place it on a page aimed at buyers with 5% to 15% down: a PMI explainer, a conventional-loan page, or a move-up buyer guide in a higher-priced market. It pairs naturally with a PMI calculator so the buyer can see how long mortgage insurance would last on the single-loan route.

Leads from this tool usually have stronger profiles than a generic payment-calculator lead. They know their price range, they have down-payment funds, and they are comfortable with the idea of two liens. That is a buyer worth a same-day call.

When the submission arrives through lead capture, read the down payment percentage first. Between 10% and 20% the combination is a live question; below that, the second lien grows large and the structure is harder to place. Then look at the Monthly Savings with Combo result. A negative number means the combination costs more at the rates the buyer typed, which happens when the second-lien rate is high or PMI is cheap.

Your value is pricing both structures with real quotes, adding closing costs for the second lien, and showing the buyer when PMI could drop off. The calculator starts that conversation; it does not finish it.

What arrives in your CRM

What the numbers tell you about the borrower

  • Down Payment (%)Ten to fifteen percent is the sweet spot for a combination structure and signals a buyer with real savings. Under five percent, the second lien becomes large and harder to place, so lead with other programs.
  • Monthly Savings with ComboA positive figure means the buyer believes the combo wins at their assumed rates. Negative means PMI looked cheaper. Either way, they expect you to confirm with live pricing, so prepare both quotes before calling.
  • Second Mortgage Rate (%)If the buyer typed a second-lien rate close to the first, their expectations may be optimistic. Reset them early and kindly, since second-lien pricing usually runs higher and changes the whole comparison.
  • Home PriceA price near the conforming limit can mean the combo is being used to keep the first mortgage conforming rather than to avoid PMI. Ask which goal matters more to them.

A first message that uses their numbers

What is a good first message to a piggyback lead?

Thanks for comparing the combination loan with a single loan and PMI. The answer depends heavily on the second loan's rate and how long PMI would last, so I can price both versions for you once I know your timeline and roughly where your credit sits. Would a quick call or an email side-by-side work better?

Disclose that a second mortgage brings its own closing costs and terms, and avoid calling PMI avoidable without showing the trade-off.

Where this calculator earns its place

  1. 01

    Conventional loan or PMI explainer page

    Buyers reading about PMI are the ones asking whether a second mortgage could replace it.

  2. 02

    Move-up buyer landing page

    Sellers buying their next home often have 10% to 15% from their sale and are natural combination candidates.

  3. 03

    Agent co-marketing page for higher-priced listings

    Buyers on expensive listings use it to judge structure before writing an offer; keep any agent arrangement at fair market value and run it past compliance.

Limits worth knowing

  • One loan term applies to all three loans here; actual second mortgages often have shorter terms or balloon features.
  • Closing costs for the second lien are not included, and they can erase several months of monthly savings.
  • PMI on the single loan is modeled as a flat annual rate; real PMI pricing varies with credit and LTV, and it can end once enough equity is built.

Calculator disclaimer: Estimates only. A piggyback (combination) loan avoids PMI but the second mortgage usually carries a higher rate. PMI rules, rates, and eligibility vary by lender. A negative savings means the combination costs more per month. Confirm terms before deciding.

Definitions in the calculator

Combination (piggyback) mortgage
A purchase financed with two loans closed at the same time: a first mortgage sized to stay at the PMI-free threshold and a smaller second mortgage that covers the rest of the gap above the down payment. This calculator compares that pair against one larger loan with PMI, using the same term for every loan.
PMI
Private mortgage insurance protects the lender, not the borrower, on a conventional loan with less than 20% down. Here it is an annual rate on the single-loan balance, divided by 12 and added to the payment. Under the Homeowners Protection Act of 1998 it can be cancelled on request at 80% of original value and ends automatically at 78%.
First mortgage
The primary loan, entered here as a percent of the home price. Setting it at 80% keeps it at the usual PMI-free line; whatever you borrow beyond it becomes the second mortgage. The first mortgage rate is also used for the single-loan scenario, so the comparison isolates the effect of splitting the debt.
Second mortgage
A loan secured by the same home but subordinate to the first mortgage, so the lender is repaid second after a sale or foreclosure. That extra risk is why its rate is usually higher. In this calculator its amount is the home price minus the down payment minus the first mortgage, and it is amortized over the same term.
Down payment
The cash paid toward the purchase price at closing, entered here as a percent of the price. Everything not covered by it is borrowed, either as one loan with PMI or as a first plus second mortgage. A larger down payment shrinks the second mortgage and, at 20% or more, removes PMI from the single-loan side.
Loan-to-value ratio (LTV)
The loan balance divided by the home’s value, as a percent. A $320,000 loan on a $400,000 home is 80% LTV. Lenders price risk and require PMI based on it. The combination structure keeps the first mortgage’s LTV at the threshold while the combined LTV of both loans stays the same as the single loan.
Principal and interest
The part of a mortgage payment that repays the loan and pays the lender’s interest, excluding taxes and insurance. The combo payment here is the principal and interest on both loans added together; the single-loan payment is principal and interest plus PMI. Neither includes property tax or homeowners insurance, which would be the same in both cases.
Interest rate
The annual percentage the lender charges on the outstanding balance, before fees. This calculator takes two: one for the first mortgage (also used for the single loan) and one for the second. Because the second-mortgage rate is usually higher, the combination only wins when its extra interest costs less than the PMI it avoids.
Loan term
The number of years over which a loan is scheduled to be repaid. A longer term lowers the monthly payment but raises total interest. Here one term applies to the first mortgage, the second mortgage and the single loan alike; in practice second mortgages often have shorter terms or balloon payments, which would change the comparison.

Terms on this page

Pairs well with

PMI Calculator

Most buyers avoiding PMI are really avoiding a purchase they could already make; this tool lets them see it.

Down Payment Calculator

Meet buyers while they are still saving, and know to the month when they expect to be ready.

Affordability Calculator

Buyers type in what they earn and owe; you get a lead that already knows its price ceiling and which ratio set it.

FAQ · 8 questions

Questions about this calculator

What is an 80/10/10 piggyback loan?

It is a purchase financed with a first mortgage for 80% of the price, a second mortgage for 10%, and a 10% down payment. Keeping the first loan at 80% of the price is what lets it avoid PMI. In this calculator you set the down payment and the first-mortgage percentage, and the second mortgage covers whatever is left in between.

When does a combination loan cost more than PMI?

When the second mortgage's rate is high enough, or the PMI rate low enough, that the extra interest outweighs the insurance. The calculator shows this as a negative Monthly Savings with Combo figure. Strong credit tends to lower PMI pricing, which can tilt the answer toward a single loan. It is also worth remembering that PMI can end once equity grows, while the second lien keeps charging interest until it is repaid.

Why does the calculator use the first-mortgage rate for the single loan?

It assumes the single loan would be priced like the first mortgage, then adds PMI on top. That isolates the comparison to one question: is a second lien cheaper than mortgage insurance? In real pricing, a single loan above 80% LTV may carry a slightly different rate, so the actual quotes you receive can shift the result.

Can I remove PMI later instead of using a piggyback loan?

Often, yes. On many conventional loans, PMI can be cancelled on request once the balance reaches 80% of the original value, and it ends automatically at a lower threshold under federal rules, subject to conditions. Paying down principal or a rising home value may get you there sooner. A second mortgage, by contrast, stays until it is repaid or refinanced.

Who is a good audience for a combination mortgage calculator?

Buyers with roughly 10% to 15% down who are financially organized and shopping a specific price range, including move-up buyers using proceeds from a sale. They are usually closer to a decision than someone just exploring payments. First-time buyers with minimal savings are better served by FHA, USDA or low-down-payment conventional content. Agents' buyers on higher-priced listings are another natural audience.

What do I see when a piggyback lead comes in?

Every input and result the buyer saw: home price, down payment percentage, first-mortgage percentage, both rates, PMI rate, term, the two payments, the monthly savings and both loan amounts. PrequalFunnel also records the page URL and traffic source. You can see straight away whether the buyer believes the combo wins and how realistic their rate assumptions are.

Should I list a piggyback calculator if I do not offer second mortgages?

Only if you can place the second lien through a partner or can explain the alternatives honestly. If you cannot deliver the structure, use the page to show why a single loan with PMI might be the better route, and pair it with the PMI calculator. Advertising a product you cannot originate is likely to frustrate the borrower and may raise compliance questions.

Can this calculator be bundled with PMI and affordability tools?

Yes. A PrequalFunnel widget can group several calculators into tabs, buttons or cards, so a buyer can check affordability, see how PMI would behave and then compare the combination structure in one place. Each calculation is appended to the same contact's history in the CRM, so you see the full path the buyer took. That path often reveals whether price or monthly cost is the buyer's real constraint.

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