What is the difference between private mortgage insurance and piggyback loans?

If you are trying to get a mortgage without a large down payment, your lender may offer you piggyback loans or private mortgage insurance. While these options are similar, there are some differences between them. With a piggyback loan, you are actually taking out two separate loans. You will have the primary mortgage, which will be in a first position on your house. Then you have a secondary loan that is for the remaining percentage that is left over after the primary mortgage and your down payment. Private mortgage insurance is an insurance policy that will provide the lender with payment from a third party if you default on the mortgage.