Send feedback to the editorial team. Rate this Article. Thank You for your feedback! Something went wrong. Please try again later. Best Of. Types of Mortages. Mortgage Basics. More from. Mortgage Broker Vs. Loan Officer Vs. Information provided on Forbes Advisor is for educational purposes only.
Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.
Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor adheres to strict editorial integrity standards.
If you have a question, others likely have the same question, too. By sharing your questions and our answers, we can help others as well. Personal credit report disputes cannot be submitted through Ask Experian. To dispute information in your personal credit report, simply follow the instructions provided with it. Your personal credit report includes appropriate contact information including a website address, toll-free telephone number and mailing address.
To submit a dispute online visit Experian's Dispute Center. If you have a current copy of your personal credit report, simply enter the report number where indicated, and follow the instructions provided. If you do not have a current personal report, Experian will provide a free copy when you submit the information requested.
Additionally, you may obtain a free copy of your report once a week through April at AnnualCreditReport. Learn more. Editorial Policy: The information contained in Ask Experian is for educational purposes only and is not legal advice. You should consult your own attorney or seek specific advice from a legal professional regarding any legal issues. Please understand that Experian policies change over time. Posts reflect Experian policy at the time of writing.
While maintained for your information, archived posts may not reflect current Experian policy. Opinions expressed here are author's alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities.
All information, including rates and fees, are accurate as of the date of publication and are updated as provided by our partners. Some of the offers on this page may not be available through our website. Offer pros and cons are determined by our editorial team, based on independent research. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews.
A piggyback mortgage is essentially a second mortgage, or home equity loan, that is taken out by a borrower at the same time as their first mortgage. The purpose of a piggyback loan is to help a homebuyer avoid various extraneous obligations that come along with taking out a large home mortgage loan. The following are the most notable benefits of taking out a piggyback loan.
As mentioned earlier, a piggyback loan can help you avoid having to do this altogether. A savvy mortgage broker will recommend you do a combination loan that allows you to essentially break up the total cost of the home into a down payment, a first mortgage and a piggyback loan.
Either method has both advantages and drawbacks. For example, MI may be cancelable after a fairly short period of time through no effort on your part, aside from making your regular monthly payments. That is, if the value of your home has risen sharply, you may be able to cancel MI in just two years. You have no such option for the second lien arrangement, though; you signed on for a given number of payments to retire the lien, and that cannot be changed without a slug of cash to pay off the loan or a refinance.
Of course, if you're not diligent about making your payments on time, your mortgage lender can refuse to cancel your MI. You could always refinance, of course, although rates may not favor you.
On the other hand, even if you're late occasionally with payments on your second lien, it will still have a fixed termination date and a known cost.
As we mentioned above, there can be tax benefits for a second lien versus MI situation, at least on a comparable basis, but only if you itemize on your tax return. In the case of a 'convenience HELOC' arrangement, we suggest that there's nothing inherently wrong with this, provided that you get a deal no worse than what is available to you in the open market. Do keep in mind that should you select this feature, you might be hit with recurring annual or "low-or non-usage" fees even if you don't borrow any money against your home right away.
A: From through , the answer was yes. However, the deductibility of MI premiums isn't part of the tax code, and so is subject to the whims of Congress. While PMI premiums were deductible from through , it wasn't clear if they would ever be made deductible again.
Then, in late , so-called "extenders" added into the "Further Consolidated Appropriations Act, " made PMI premiums retroactively deductible for tax years and also extends the deduction through tax year If you filed for and itemized deductions on Schedule A , you might consider filing an amended tax return , to capture the MI deduction for , if it is worth it in your situation. Keith Gumbinger.
0コメント