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An 80/15/5 mortgage is one example of a combination loan or piggyback loan.
The purpose of the 80/15/5 loan is
to allow the borrower to take a loan with less money down, but still be
able to avoid PMI.
An 80/15/5 mortgage actually consists of two separate loans.
The first loan is for 80% of the home value, and the second loan is
for 15% of the home value. The borrower puts in the remaining 5% as the down payment.
The second mortgage is usually for a higher
interest rate than the first. Also, many common second loan programs
amortize the loan over 30 years, but have a balloon payment
after a certain number of years (usually 15 or 20 years). So the payments
on the second mortgage will be pretty low, but you will have to pay off
the entire balance when the balloon payment is due.
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