The 80-20 mortgage does have its benefits though for a few select groups of people. For example, those just out of college or just in a new career may not have the savings built up yet to handle a large down payment on a home. This kind of mortgage will allow them to be able to handle their loan as well as allow them to save on the side as their salaries increase.

This mortgage is also a good investment for those who are a little more well- off and want a low cost loan. What happens is that the richer folks can use these loans to keep their money liquid instead of trapped in a home. They can take the cash they would have spent on the home and invest it or do other things with it that will help them make even more money.

The 80-20 mortgage is a good way for many people to begin investing in a new home, but just as with any investment, you need to make sure you know what you're getting into.

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