Hello,

An 80/20 mortgage is actually two mortgages. The primary mortgage, also called the first mortgage, is for 80 percent of the purchase price of the home; the secondary mortgage, also called an equity loan, is for 20 percent of the purchase price. 80/20 Mortgage is also known as “tandem”.

We can also say that; first mortgage consists of eighty percentage of the purchase price and second of twenty percentage in 80/20 Mortgage. An 80/20 Mortgage can be the most useful for the person who are not able to pay the down payments of their Mortgage Loan. So it is too much useful. There are so many advantages of 80/20 Mortgage Loan, but Is there any disadvantages of 80/20 Mortgage loan?

Thanks.