80-10-10 Mortgage Loans
80-10-10 loans are sometimes called piggyback loans; they are a creative way to finance a home purchase. Borrowers who don't have a lot of cash prefer this arrangement, and since the payments are usually lower, it allows you to qualify for a larger mortgage.
Using this type of loan, you pay 10% down, and then get one loan for 80% of the purchase price, thereby avoiding the expense of private mortgage insurance, and a second loan for the remaining 10%.
The advantages of doing this are that your whole payment is tax deductible. You can also opt to pay off the second loan earlier and thereby reduce your total payment (if there are no prepayment penalties).
On the down side, depending on current interest rates available for the second loans, your total payment may actually be higher than if you had one traditional loan. The rates on second mortgages will usually be about two percent higher and the term will be 15 years instead of 30.