Seattle Times
With house values dropping, experts say that if you can hold on until the market turns around, you may still be able to get better mortgage rates.
When Roland Leger bought his house three years ago, he managed to avoid getting caught up in an adjustable-rate mortgage that was set to increase within the next year or two — the kind of loan that is trapping many people these days with interest rates higher than they can afford.
Leger stumbled into a different kind of rate trap. He opted for a loan known as a piggyback mortgage, which was popular during the heyday of the real-estate boom. Essentially, he divided his mortgage into two loans to avoid private mortgage insurance, which homeowners have to pay if they contribute less than a 20 percent down payment.
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