Question

A __________________ is a residential mortgage financing option in which a property is purchased using more than one mortgage from one or more mortgages. Very often, a second mortgage is secured from a lender different from the one providing the first mortgage.

Answer 1

Answer: Piggyback loan

   

Explanation: Also known as second trust loan, piggy back loans refers to the borrowings when a borrower takes two loans simultaneously. In such a case, the first loan is taken at 80 percent of the home value and the second for covering the rest 20 percent down payment.  

These are considered an alternative for private mortgages.