80/10/10 Mortgage Calculator

Home Purchase Price ($)

Down Payment (%)

First Mortgage Rate (%)

First Mortgage Term

Second Mortgage Rate (%)

Second Mortgage Term

Credit Score (For PMI Rate)

Custom PMI Rate (% Optional)

This 80/10/10 mortgage calculator helps you determine whether a piggyback loan structure saves you money compared to a conventional mortgage with private mortgage insurance (PMI). An 80/10/10 mortgage, also called a piggyback loan, splits your home purchase financing into three parts: a first mortgage covering 80% of the home price, a second mortgage or home equity line of credit (HELOC) covering 10%, and a 10% cash down payment. Because the first mortgage is capped at 80% loan-to-value (LTV), you avoid PMI entirely, which can save hundreds of dollars per month. PMI is required on conventional loans whenever your down payment is less than 20%, typically costing 0.5% to 1.5% of the loan amount annually. An 80/10/10 piggyback mortgage eliminates PMI by keeping the primary loan at or below the 80% LTV threshold. But the second mortgage comes with its own interest rate, usually higher than the first. Use this piggyback mortgage calculator to run the numbers side by side: enter your home price, loan rates, and terms, and the tool instantly shows your combined monthly payment for the 80/10/10 structure versus a single 90% LTV mortgage with PMI, so you can see exactly which option costs less, month by month and over the life of the loan.

How to Use the 80/10/10 Mortgage Calculator

Enter the Home Purchase Price - Enter the full purchase price of the home you're buying. This is the contract price, not the appraised value, though ideally they should be close. The calculator uses this figure to automatically compute the 80%, 10%, and 10% splits. For example, on a $500,000 home, the first mortgage would be $400,000, the second mortgage $50,000, and your down payment $50,000. Most 80/10/10 structures are used on homes priced between $300,000 and $1,200,000. For homes above the conforming loan limit ($766,550 in 2024 for most markets), the first mortgage may enter jumbo territory, which can affect available rates.
Enter the First Mortgage Interest Rate - Enter the interest rate for the primary (80% LTV) first mortgage. Because this loan is at exactly 80% LTV, it qualifies for the best conventional mortgage rates, no LTV surcharge or risk-based pricing adjustment. As of 2024-2025, 30-year fixed rates on an 80% LTV conventional loan typically range from 6.25% to 7.25%. This rate should be lower than what you'd receive on a 90% LTV loan (which carries rate adjustments for higher LTV), and that difference is part of what makes the 80/10/10 strategy work financially. Check with your lender for the exact rate quote at 80% LTV.
Enter the Second Mortgage Interest Rate - Enter the interest rate for the second mortgage or HELOC that covers the additional 10%. Second mortgage rates are always higher than first mortgage rates because the second lender takes on more risk: in a foreclosure, the first mortgage is paid off first, and the second lender only receives what's left. As of 2024-2025, second mortgage fixed rates typically range from 8.0% to 11.0%, and HELOC rates (variable) range from 7.5% to 10.5% depending on your credit profile and the lender. If you're using a HELOC (variable rate), enter the current rate and understand it may change over time.
Select the First Mortgage Term - Choose the term for your primary mortgage, typically 30 years or 15 years. The vast majority of 80/10/10 borrowers choose a 30-year first mortgage for the lower monthly payment. A 15-year term significantly increases the monthly obligation but reduces total interest. The first mortgage term has the largest impact on your combined monthly payment since it covers 80% of the home price. A $400,000 first mortgage at 6.75% is $2,594/month over 30 years but $3,537/month over 15 years, a $943/month difference.
Select the Second Mortgage Term - Enter the term for the second mortgage. This varies widely depending on the product type. Fixed-rate second mortgages are commonly 10, 15, or 20 years. HELOCs typically have a 10-year draw period (where you can borrow and repay) followed by a 10-20 year repayment period. The shorter the second mortgage term, the higher the monthly payment but the faster you eliminate this higher-rate loan. Many borrowers strategically choose a shorter term for the second mortgage, such as a 10 or 15-year fixed, to pay it off quickly and reduce overall interest costs.
Enter the PMI Rate for Comparison - To compare the 80/10/10 structure against a traditional single loan with PMI, enter the estimated PMI rate. PMI is quoted as an annual percentage of the original loan amount and depends on your credit score, LTV ratio, and loan type. For a 90% LTV conventional loan, PMI rates typically range from 0.5% to 1.2% annually. A borrower with a 740+ credit score might pay 0.4-0.6%, while a 680 credit score might pay 0.8-1.2%. On a $450,000 loan at 0.7% PMI, that's $3,150/year or $262.50/month. Your lender's loan estimate document will show the exact PMI rate. If you don't have it, 0.7% is a reasonable middle estimate for comparison.
Review the Side-by-Side Comparison - After clicking Calculate, the tool displays a comprehensive comparison between the 80/10/10 piggyback structure and a single 90% LTV loan with PMI. Key outputs include: the combined monthly payment for both loans in the 80/10/10 (first + second mortgage), the single monthly payment plus PMI for the 90% LTV option, the monthly cost difference between the two approaches, total interest paid over the life of each option, and the breakeven point, the month or year where one option becomes cheaper than the other. Pay special attention to the breakeven analysis, because the 80/10/10 may cost more monthly but save money long-term (or vice versa) depending on how quickly PMI can be cancelled.
Factor in PMI Cancellation - Under the Homeowners Protection Act, lenders must automatically cancel PMI when your loan balance reaches 78% of the original home value, and you can request cancellation at 80%. On a 90% LTV loan, reaching 80% LTV through regular payments typically takes 8-11 years, depending on the rate and term. Once PMI drops off, the single-loan option becomes significantly cheaper because you're only paying one mortgage with no insurance. The calculator shows the PMI cancellation date and recalculates the total cost comparison with and without PMI cancellation factored in; this is critical because many online comparisons ignore this and overstate the piggyback advantage.

How an 80/10/10 Mortgage Is Calculated

First Mortgage = Price x 0.80 | Second Mortgage = Price x 0.10 | Down Payment = Price x 0.10 | Payment: M = P x [r(1+r)^n] / [(1+r)^n - 1] | Monthly PMI = (Single Loan Amount x PMI Rate) / 12

Monthly Payment

The standard monthly principal and interest payment calculated independently for each mortgage based on their principal, rate, and term.

Loan Principal

The loan amount borrowed. For the first mortgage, this is capped at exactly 80% of the home purchase price.

Monthly Interest Rate

The annual interest rate divided by 12 (annual rate / 12).

Total Monthly Payments

The loan term in years multiplied by 12 (e.g. 360 payments for a 30-year first mortgage, or 180 payments for a 15-year second).

The 80/10/10 calculation involves computing two separate loan payments and comparing their sum against a single larger loan plus PMI. The home purchase price is split into the three standard ratios. Each mortgage's payment is computed using standard amortization logic. For the single-loan comparison alternative, the loan principal is the home price minus down payment. Monthly PMI is calculated using the annual rate applied to the original loan balance, and is paid until the outstanding principal balance amortizes down to 80% LTV (or 78% automatically), at which point the PMI drops off and the single loan payment reduces to just the principal and interest portion.

80/10/10 Mortgage Examples with Real Numbers

Example 1 — Mid-Range Home Where 80/10/10 Wins

Sarah is buying a $450,000 home in Atlanta with $45,000 (10%) down. She's comparing an 80/10/10 piggyback against a single 90% LTV loan with PMI. Her credit score is 760. Sarah saves $104/month upfront with the piggyback and $32,300 over the life of the loans. The 80/10/10 wins because her strong credit qualifies her for a competitive second mortgage rate, and the PMI elimination plus the better first mortgage rate (80% LTV pricing) more than offset the higher-rate second loan.

Inputs

Home Price: $450,000 · Down Payment: 10% · 1st Rate: 6.50% (30-yr) · 2nd Rate: 8.75% (15-yr) · PMI Rate: 0.60% (Year 9 cancel)

Result

Piggyback: $2,725/mo ($2,275 1st + $450 2nd) · Single Loan + PMI: $2,829/mo ($2,627 P&I + $202 PMI) · Savings: $104/mo · Lifetime Savings: $32,300.

Example 2 — Higher PMI Rate Makes Piggyback a Clear Winner

David is purchasing a $380,000 home in Phoenix with 10% down ($38,000). His credit score is 700, which pushes his PMI rate higher. David's lower credit score means PMI costs 1.0% annually instead of 0.5-0.6%. At this PMI rate, the 80/10/10 piggyback saves $195/month, over $2,300 per year. For borrowers with credit scores between 680 and 720 who face higher PMI rates, the piggyback structure almost always wins.

Inputs

Home Price: $380,000 · Down Payment: 10% · 1st Rate: 6.625% · 2nd Rate: 9.25% · PMI Rate: 1.00%

Result

Piggyback Payment: $2,338/mo · Single Loan + PMI: $2,533/mo · Upfront Savings: $195/mo · PMI Paid before cancel: $30,800.

Example 3 — Where PMI Might Be the Better Choice

Maria is buying a $520,000 home in Denver with 10% down ($52,000). She has excellent credit (780+) and qualifies for very low PMI. She also plans to make extra principal payments. With excellent credit and low PMI, Maria's monthly payments are essentially identical between the two options. However, if she makes $200/month in extra principal payments, she reaches 80% LTV and cancels PMI by approximately Year 5, at which point the single-loan option becomes $540/month cheaper (because the second mortgage at 9.0% still has 10 years remaining). In this scenario, the single loan with PMI is the better long-term choice.

Inputs

Home Price: $520,000 · Down Payment: 10% · 1st Rate: 6.50% · 2nd Rate: 9.0% · PMI Rate: 0.42%

Result

Piggyback Payment: $3,161/mo · Single Loan + PMI: $3,159/mo · Monthly Diff: $2 · Single Loan wins after Year 5 once PMI cancels.

Example 4 — 80/15/5 Variation (Only 5% Down)

The 80/10/10 structure can be modified. An 80/15/5 piggyback uses a 15% second mortgage with only a 5% down payment. Jason is buying a $400,000 home in Nashville with just $20,000 (5%) down. The 80/15/5 variation is especially powerful when the down payment is very small, because PMI on a 95% LTV loan is substantially more expensive (1.0-1.4% annually) than on a 90% LTV loan. Jason saves $258/month, over $3,000 per year, making the piggyback the significantly cheaper option despite the high second mortgage rate.

Inputs

Home Price: $400,000 · Down Payment: 5% · 1st Rate: 6.50% · 2nd Rate: 9.5% · PMI Rate: 1.20%

Result

Piggyback Payment: $2,650/mo · Single Loan + PMI: $2,908/mo · Savings: $258/mo.

Who Uses an 80/10/10 Mortgage?

Buyers with 10% down who want to avoid PMI

Homebuyers who have saved a 10% down payment but not a full 20%, using the calculator to confirm that a piggyback loan eliminates PMI and costs less than the single-loan alternative with insurance premiums.

Buyers with 5% down exploring 80/15/5 structures

First-time buyers with limited savings evaluating whether an 80/15/5 piggyback (keeping the first mortgage at 80% LTV with a larger second mortgage) costs less than a 95% LTV loan where PMI rates are especially high, often exceeding 1.0% annually.

Borrowers with mid-range credit scores (680-720)

Buyers whose credit scores push PMI rates into the 0.8-1.2% range, making PMI particularly expensive and the piggyback structure significantly more attractive compared to borrowers with 760+ scores who qualify for lower PMI rates.

Homebuyers near the conforming loan limit

Buyers purchasing homes where a 90% LTV loan would exceed the conforming limit ($766,550 in 2024), forcing them into higher-rate jumbo territory. An 80/10/10 keeps the first mortgage under the conforming limit, qualifying for better conventional rates while the smaller second mortgage covers the gap.

Financial advisors comparing loan structures for clients

Mortgage brokers and financial planners running side-by-side calculations for clients to demonstrate the total cost of ownership under piggyback vs. PMI structures, including the breakeven point where PMI cancellation changes the comparison.

Common Mistakes When Calculating 80/10/10 Mortgages

⚠️Ignoring the PMI cancellation date in the comparison

PMI is not permanent, it cancels automatically at 78% LTV or by request at 80%. Many 80/10/10 calculators and blog posts compare the piggyback against PMI as if PMI lasts the entire 30 years, which massively inflates the PMI cost and makes the piggyback look artificially better. On a 90% LTV loan, PMI typically cancels between Year 8 and Year 11. After that point, the single loan with no PMI is almost always cheaper than the 80/10/10 because you're only servicing one loan. Always factor in PMI cancellation when comparing total lifetime costs.

⚠️Using the same interest rate for the first mortgage in both scenarios

A critical advantage of the 80/10/10 is that the first mortgage at 80% LTV qualifies for better pricing than a 90% LTV loan. Lenders apply loan-level pricing adjustments (LLPAs) for higher LTV ratios: a 90% LTV loan typically carries a rate 0.125% to 0.375% higher than an 80% LTV loan. If you use the same rate for both scenarios, you're underestimating the piggyback's advantage on the first mortgage. Always get separate rate quotes at 80% and 90% LTV from your lender for an accurate comparison.

⚠️HELOC variable rate changes

If your second mortgage is a HELOC rather than a fixed-rate second, the rate can change, often variable; HELOC at 8.0% today could be 10.5% in two years if rates rise. Running the calculator with today's HELOC rate only shows the current snapshot. For a realistic projection, model the HELOC at both the current rate and 2-3% higher to see how rate increases on the second mortgage affect the overall comparison. If the piggyback only wins at today's HELOC rate but loses at a higher rate, the advantage is fragile.

⚠️Overlooking closing costs on two loans vs. one

An 80/10/10 requires closing two separate loans, each with its own origination fees, appraisal allocation, title insurance, and recording costs. The second mortgage typically adds $1,500-$4,000 in additional closing costs that don't exist with a single loan. These extra upfront costs reduce the piggyback's savings and extend the breakeven period. The calculator should include closing costs for both structures; if it doesn't, add the estimated second mortgage closing costs to your total piggyback cost manually before comparing.

80/10/10 Piggyback vs. Single Loan with PMI - At a Glance

The table below compares the total monthly cost of an 80/10/10 piggyback against a single 90% LTV loan with PMI for a $450,000 home at different credit score tiers and second mortgage rates. All first mortgages are 30-year fixed; second mortgages are 15-year fixed. Down payment is 10% ($45,000) in all scenarios.

Credit Score	1st Mtg Rate (80% LTV)	2nd Mtg Rate	PMI Rate (90% LTV)	Monthly: 80/10/10	Monthly: 90% + PMI	Winner (Monthly)
760+	6.375%	8.25%	0.42%	$2,706	$2,692	PMI (by $14)
740	6.50%	8.75%	0.58%	$2,738	$2,783	80/10/10 (by $45)
720	6.50%	9.0%	0.72%	$2,749	$2,837	80/10/10 (by $88)
700	6.625%	9.25%	0.90%	$2,785	$2,926	80/10/10 (by $141)
680	6.75%	9.75%	1.10%	$2,836	$3,015	80/10/10 (by $179)

Frequently Asked Questions

What is an 80/10/10 mortgage?▼

An 80/10/10 mortgage is a financing structure that splits your home purchase into three parts: a first mortgage for 80% of the home price, a second mortgage or HELOC for 10%, and a 10% down payment from the buyer. The primary purpose is to avoid private mortgage insurance (PMI), which is required on conventional loans with less than 20% down. By keeping the first mortgage at exactly 80% loan-to-value, the borrower meets the threshold that eliminates the PMI requirement. The second mortgage covers the gap between the 10% down payment and the 20% equity needed to avoid insurance. This structure is also called a piggyback loan because the second mortgage "piggybacks" on top of the first.

How does an 80/10/10 mortgage eliminate PMI?▼

PMI is triggered when a conventional first mortgage exceeds 80% of the home's value. In an 80/10/10 structure, the first mortgage is exactly 80% LTV, meeting the threshold where PMI is not required. The remaining 10% of financing comes from a separate second mortgage, which is a completely different loan with its own terms. Lenders evaluate PMI based on the first mortgage's LTV ratio only, not the combined financing. So even though the borrower is only putting 10% down in cash, the first lender sees an 80% LTV loan and does not require insurance. The second mortgage lender accepts the higher risk in exchange for a higher interest rate on their loan.

What is the difference between 80/10/10 and 80/15/5?▼

Both are piggyback mortgage structures that avoid PMI, but they differ in the split between the second mortgage and down payment. An 80/10/10 uses a 10% second mortgage and 10% down payment. An 80/15/5 uses a 15% second mortgage and only a 5% down payment. The larger the second mortgage, the higher your combined monthly payment (because second mortgage rates are higher), but the less cash you need upfront. The 80/15/5 is useful for buyers who haven't saved a full 10% down payment but still want to avoid PMI, which at 95% LTV would be very expensive (typically 1.0-1.4% annually).

Is an 80/10/10 mortgage better than paying PMI?▼

It depends on your credit score, PMI rate, second mortgage rate, and how long you plan to keep the loan. The 80/10/10 is typically better when your credit score is below 740 (where PMI rates are higher), the second mortgage rate is below 9.5%, and you plan to keep the loans for more than 7-8 years. PMI tends to be the better option when your credit score is above 760 (qualifying for low PMI rates of 0.3-0.5%), you can make extra principal payments to reach 80% LTV and cancel PMI quickly, or the available second mortgage rate is above 10%. The breakeven point, the month or year where the cumulative cost of one option overtakes the other, is the key metric. Use the calculator to find your specific breakeven month.

Can I deduct interest on both mortgages in an 80/10/10?▼

Yes, interest on both the first and second mortgage is generally tax-deductible under current tax law, as long as the combined loan balance does not exceed $750,000 (for mortgages originated after December 15, 2017) or $1,000,000 (for mortgages originated before that date). The combined balance in an 80/10/10 is 90% of the home price, so for homes priced up to approximately $833,000, the full interest on both loans is deductible. PMI deductibility, in contrast, has been inconsistent, Congress has allowed and expired the PMI deduction multiple times. If PMI is not deductible in a given tax year, the 80/10/10 has an additional advantage because all of its financing costs are deductible.

What credit score do I need for an 80/10/10 mortgage?▼

You'll need to qualify for two separate loans, each with its own credit requirements. The first mortgage (80% LTV conventional) typically requires a minimum credit score of 620, though most lenders prefer 680+. The second mortgage or HELOC generally requires a higher minimum: most lenders require 680 or above, with 700+ preferred for the best rates. Since you're carrying two loans, lenders also evaluate your total debt-to-income (DTI) ratio, which combines payments on both loans. Most lenders cap DTI at 43-45% for the combined obligation. If your credit score is below 680, you may struggle to find a competitive second mortgage, making PMI the more practical option.

What are the closing costs on an 80/10/10 mortgage?▼

You'll pay closing costs on two separate loans. The first mortgage closing costs are standard, typically 2-5% of the loan amount, covering origination, appraisal, title insurance, recording, and other fees. The second mortgage adds its own closing costs, usually between $1,500 and $4,000, which may include a separate origination fee, subordination fee, title endorsement, and recording costs. Some lenders offer reduced or waived closing costs on the second mortgage to win the combined deal, so it's worth negotiating. In total, expect 80/10/10 closing costs to run $2,000-$5,000 higher than a single loan closing. Factor this difference into your breakeven calculation.

Can I pay off the second mortgage early?▼

Yes, and this is one of the smartest strategies with an 80/10/10. Since the second mortgage carries a higher interest rate (8-10%+), paying it off early saves substantial interest. Most second mortgages and HELOCs do not have prepayment penalties, though you should verify this before closing. A common approach is to make minimum payments on the first mortgage (low rate) and aggressively pay down the second mortgage (high rate). Once the second mortgage is eliminated, you're left with a single 80% LTV first mortgage at the best possible rate, with no PMI and no second payment, the ideal position. Some borrowers plan to pay off the second mortgage within 5-7 years using bonuses, windfalls, or extra monthly payments.

Does the 80/10/10 structure work with FHA or VA loans?▼

No, the 80/10/10 piggyback is a conventional loan strategy only. FHA loans have their own mortgage insurance (MIP) structure that cannot be avoided with a piggyback, FHA MIP is required regardless of the LTV ratio and typically lasts for the life of the loan on purchases with less than 10% down. VA loans do not require PMI or MIP at any LTV, so the piggyback structure is unnecessary. If you qualify for a VA loan, it's almost always the better option since there's no mortgage insurance to avoid. The 80/10/10 is specifically designed for conventional financing where PMI is the alternative.

What happens to the second mortgage if I refinance the first?▼

If you refinance your first mortgage, the second mortgage doesn't automatically disappear, it remains in place as a separate lien on the property. However, the new first mortgage lender will require the second mortgage lender to agree to a subordination, a legal document confirming the second mortgage remains in second lien position behind the new first mortgage. Some second mortgage lenders charge a subordination fee ($200-$500) and may decline if certain conditions aren't met (like if the new first mortgage increases the combined LTV beyond their comfort level). Alternatively, you can refinance both loans into a single new mortgage, effectively collapsing the 80/10/10 into a standard loan, which makes sense once you have enough equity to stay at or below 80% LTV on the combined refinance.

Are piggyback loans risky?▼

Piggyback loans carry somewhat more risk than a single mortgage because you're servicing two separate obligations with potentially different terms, rates, and lenders. If you fall behind on the second mortgage, the second lender can initiate foreclosure independently of the first. If the second mortgage is a HELOC with a variable rate, your combined payment could increase unpredictably. During the 2008 financial crisis, many piggyback borrowers found themselves underwater on both loans simultaneously. That said, piggyback mortgages have tightened significantly since 2008, lenders now require stronger credit scores, lower DTI ratios, and more documentation. For a financially stable buyer who understands both obligations and has a clear plan to manage or pay off the second mortgage, the risk is manageable and often outweighed by the PMI savings.

How do I find lenders that offer 80/10/10 mortgages?▼

Not all lenders offer piggyback mortgage structures, so you may need to shop around. Start with portfolio lenders (credit unions, community banks) who hold loans on their own books, they often have more flexibility with combined structures. Major online lenders and mortgage brokers may also offer 80/10/10 packages. When shopping, request quotes for both the first and second mortgage from the same lender, some lenders offer combined deals with reduced closing costs. Also get competing quotes from separate lenders for each loan. The first mortgage rate is usually similar across lenders, but second mortgage rates can vary by 1-2%, making comparison shopping essential for the piece that matters most.

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