Is it better to put 20% down or do a 10% Combo Mortgage?We are first time home buyers and I spoke with a mortgage broker this week. After being given all of our information, running our credit reports, and me telling him that we wanted (and could afford) to put 20% down, he insisted that wasn't the right thing to do. He said it would be more beneficial for us to save our money and do a Combo Mortgage which would consist of 10% down, 80% in a first mortgage at 30 years, and the remaining 10% in a second mortgage at 15 years for a higher rate (in order to avoid paying PMI). I don't understand how having 2 mortgages could be more beneficial than just putting the 20% down when we already have it saved?April 22 2011 - Staten Island11YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.