Piggyback or combination loans What kind of loan is right for you. If you are like the majority of Americans you have virtually no idea. Combination loans are a popular choice but are they any good? Here are some facts about these mortgages when compared to single mortgages: Combination mortgages are better if they do not have a very large difference in their rates. If they have a very similar rate then they are able to compete directly with a single mortgage home loan. And if their rates are different as most are then you will want to pay off the highest rated one first in order to save money on interest. Makes sense right> This way you will still be coming out ahead of the single loan if it has even a slightly higher interest rate. And one of the key factors that many people fail to take into account is their tax deductible. When you have taken out a combination loan you have more that can be deducted from your taxes, which in the end means even more savings for you. This is great especially if you are one of the people who find themselves in one of the higher tax brackets. If you were to get both of your mortgages from the same lender they might be willing to waive one of the sets of closing costs but if you were to get them both from different lenders you will have more fees to pay compared to single mortgages. And like with all mortgages you are going to have to take into consideration how log you plan on living in your home. It pretty much boils down to the fact that you are better off with another type of mortgage if you are in low tax brackets, it is those with the higher brackets that will benefit the most from these combination loans.