In recent years, mortgage lenders responded to the demand from home buyers who were unable to put $20$ percent down on their purchase and were

looking to avoid the private mortgage insurance $($PMI$)$ requirement that would typically accompany such a loan by developing a second mortgage that is

created simultaneously with the first mortgage in an amount of ten percent of the value of the home. This enabled the borrower to obtain $90$ percent

financing while avoiding the additional cost of PMI. These loans are more commonly referred to as:

Multiple Choice

subprime mortgage loans.

home equity loans.

piggyback mortgage loans.

reverse mortgages.