So, you want to buy a home in Los Angeles, but the high price of real estate means that coming up with a 20% downpayment is impossible? Thus, you know you're going to have to pay PMI, or private mortgage insurance.

Or do you?

Some home buyers are using piggyback loans to cover their downpayments, which is essentially a second mortgage that closes at the same time as your primary mortgage. Unlike PMI, second mortgage interest can be tax deductible. Of course there are some downsides to piggyback loans. Aside from being harder to qualify for, piggyback loans mean that you won't be taking out another mortgage on your home - in most instances. Additionally, second mortgages don't always result in a savings.

For more on piggyback loans, click here. Need a mortgage broker?