Combine a first and second mortgage to find your effective rate.
Effective Blended Rate
7.100%
1st: 6.75% (80%) ยท 2nd: 8.5% (20%)
1st Mortgage Payment
$2,076
2nd Mortgage Payment
$788
Total Monthly Payment
$2,863
Total Loan Amount
$400,000
Loan Composition
A blended rate is the weighted average interest rate across two loans (e.g., a first and second mortgage). It helps you understand your true cost of borrowing when using a piggyback loan structure.
A common strategy is an 80/10/10 loan: 80% first mortgage, 10% second mortgage, 10% down. This avoids PMI while keeping a lower blended rate than a single high-LTV loan.
A HELOC (Home Equity Line of Credit) is a type of second mortgage with a variable rate and revolving credit. A traditional second mortgage has a fixed rate and fixed payment schedule.
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