A 125 Home Equity Loan is just the perfect product for consumers who wish to take out a large loan, but have very little equity accumulated. A 125 Home Equity Loan offers up to 125% of the consumer’s home value, less their first mortgage balance.
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General Overview for 125 Home Equity Loans
A 125 Home Equity Loan is a beneficial Second Mortgage. Even if a consumer has just bought their home they can get a 125 Home Equity Loan and it could be used for Debt Consolidation, Home Improvements, or any other items a consumer needs cash for. The 125 Home Equity Loans come generally as Fixed-Rate mortgages and that is certainly beneficial because the consumer will always know exactly how much their bill will be every single month.
Consumers should be aware of the risks involved with a 125 Home Equity Loan. Since the consumer is borrowing more than the value of their home, they will not be able to sell their home unless they pay off both their first mortgage as well as their 125 Home Equity Loan. Furthermore, since the consumer has no equity to offer the lender in case of a default, the consumer’s interest rates will be higher than they would be with a standard home equity loan.
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About 125 Home Equity Loans
The interest rates as well as the maximum loan amounts for a 125 Home Equity loan are usually based on the consumer’s credit score, and since the consumer has no equity to offer the lender, it is of utmost importance that the consumer has good credit. Lenders will need to know they can count on the consumer. Should a consumer obtain a credit report to ascertain their financial standing, here are some guidelines that will be helpful in obtaining a 125 Home Equity Loan: if the consumer has a credit score between 720 and 850, they have good credit, or so-called are A-Paper and the consumer should have very little if any difficulty in obtaining a 125 Home Equity Loan. Should the consumer score below 660, they will have difficulty locating a lender, although the cutoff between A-Paper and Sub-Prime lending is 620.
Advantages & Disadvantages of 125 Home Equity Loans
The premium advantage #1 is that this 125 Home Equity Loan could be used for Debt Consolidation, Home Improvements, or any other items a consumer needs cash for.
The main disadvantage is the RISKS involved with a 125 Home Equity Loan. Since the consumer is borrowing more than the value of their home, they will not be able to sell their home unless they pay off both their first mortgage as well as their 125 Home Equity Loan.
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