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80-15-5 Piggyback Mortgage Calculator

80-15-5 piggyback mortgage calculator: compare the 80% first loan plus 15% second loan against a single 95% loan with PMI.

Results update instantly.Change any value and the estimate recalculates on the spot.

Money

80-15-5 piggyback loan

Compare an 80-15-5 piggyback mortgage against a single 95% loan with PMI.

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Combined monthly payment

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  • First loan (80%)-
  • Second loan (15%)-
  • Down payment (5%)-
  • Single 95% loan + PMI-
  • Monthly savings vs. single loan-

PMI estimate (~0.5%/yr) is approximate and drops off a single loan over time; actual rates and PMI vary by lender and credit.

How to use this calculator

1. Enter the home price and both loan rates. 2. Pick each loan term. 3. Compare the piggyback payment against a single 95% loan with PMI.

Worked example

On a $600,000 home at 6.5% for 30 years on the first loan and 8.0% for 30 years on the second: the $480,000 first loan costs $3,033.93/month and the $90,000 second costs $660.39/month, for $3,694.31 combined with $30,000 down. A single $570,000 loan at 6.5% plus ~$237.50 PMI totals $3,840.29, so the piggyback saves $145.97 per month.

How the math works

An 80-15-5 splits the purchase into an 80% first mortgage, a 15% second mortgage, and a 5% down payment, avoiding PMI because no loan exceeds 80% of the price. Monthly payments use standard amortization: P x r(1+r)^n / ((1+r)^n - 1) with r = annual rate / 12. The comparison prices a single 95% loan at the first-loan rate plus PMI estimated at 0.5% of the loan per year / 12.

What is an 80-15-5 piggyback loan?
A combo of an 80% first mortgage, a 15% second mortgage, and a 5% down payment. The two loans 'piggyback' so you borrow 95% of the price without paying PMI.
How does a piggyback mortgage avoid PMI?
PMI is charged when a single loan exceeds 80% of the home's value. With 80-15-5, the first loan is exactly 80%, so no PMI is required, though the second loan carries a higher rate.
Is a piggyback loan cheaper than paying PMI?
Not always. Compare the combined payment against the single loan plus PMI, and remember PMI eventually drops off while the second mortgage payment does not.
What are the risks of a second mortgage?
Higher rate, a second monthly payment, and two liens on the home. If you sell or refinance, both loans must be settled.
What is the difference between 80-15-5 and 80-10-10?
80-10-10 pairs an 80% first loan with a 10% second loan and a 10% down payment. 80-15-5 needs only 5% down but a bigger, pricier second loan.
Can I still get a piggyback loan today?
Availability varies by lender and market. Some lenders offer them, often as home equity products; ask lenders that advertise combo or piggyback loans.

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How it works

How the 80-15-5 Piggyback Mortgage Calculator works

Quick answer: On a $600,000 home, an 80-15-5 piggyback loan (6.5% first, 8% second) costs about $3,694.31 a month versus $3,840.29 for one 95% loan with PMI.

Formula

First loan = 80% of price; second loan = 15%; down payment = 5%
Combined payment = payment on loan 1 + payment on loan 2
Single loan comparison = 95% loan at the first-loan rate + PMI (0.5% a year)

A piggyback loan avoids PMI by keeping the first mortgage at 80% of the price.

Worked example

$600,000 price: first loan $480,000, second loan $90,000, down $30,000. Combined payment $3,694.31; single loan with PMI $3,840.29. Difference: $145.97.

$600,000 home, 6.5% first loan

Second-loan rateCombined paymentMonthly savings vs single loan
7%$3,632.70$207.59Open
8%$3,694.31$145.97Open
9%$3,758.09$82.20Open
10%$3,823.74$16.55Open

Assumptions and limits

  • Second loans (often HELOCs) may have variable rates.
  • PMI is estimated at 0.5% a year; real PMI ranges widely by credit score.

Frequently asked questions

What is an 80-15-5 piggyback loan?

A combo of an 80% first mortgage, a 15% second mortgage, and a 5% down payment. The two loans 'piggyback' so you borrow 95% of the price without paying PMI.

How does a piggyback mortgage avoid PMI?

PMI is charged when a single loan exceeds 80% of the home's value. With 80-15-5, the first loan is exactly 80%, so no PMI is required, though the second loan carries a higher rate.

Is a piggyback loan cheaper than paying PMI?

Not always. Compare the combined payment against the single loan plus PMI, and remember PMI eventually drops off while the second mortgage payment does not.

What are the risks of a second mortgage?

Higher rate, a second monthly payment, and two liens on the home. If you sell or refinance, both loans must be settled.

What is the difference between 80-15-5 and 80-10-10?

80-10-10 pairs an 80% first loan with a 10% second loan and a 10% down payment. 80-15-5 needs only 5% down but a bigger, pricier second loan.

Can I still get a piggyback loan today?

Availability varies by lender and market. Some lenders offer them, often as home equity products; ask lenders that advertise combo or piggyback loans.

Can I use this as a second mortgage loan calculator?

Yes. The 15% piggyback loan is a second mortgage: enter the home price and both rates to see its loan amount and monthly payment.

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