80/10/10 – If you have 10% down payment and do not want to pay Private Mortgage Insurance (PMI), then the right solution is an 80/10/10 loan. The numbers reflect how the purchase price will be covered. Specifically, the homeowner will take out both a primary mortgage (≤80%) and a second mortgage (≥10%) of the home’s value, respectively, and the last 10% is down payment by the borrower. A Home Equity Line of Credit (HELOC) is offered up to 90% of the home value. Though PMI is not required on this type of loan, but the second mortgage will carry a higher interest rate than the primary mortgage.