Taking the money you have built up in your home is the smartest and cheapest way to borrow money. Using this method as opposed to racking up expenditures on a credit card is just good sense. It has never been easier to use the money that you have built up in your home than it is in today’s lenders marketplace. If you are looking to raise some money and your home is worth a good deal more than the amount you still have borrowed against it then you might want to consider a 125% Home Equity Loan. A 125 Home equity loans use the amount of equity you have in your home and you get a big check.
How a 125 home equity loans work
A lender will look at the appraisal of the value of your home. That is the figure that the lender uses to work out what he can lend. If your homes appraised value is $100,000 and the lender will go up to 125% of the appraised value, this means a lender would lend you up to $125,000 on your home. If you still owe $60,000 from your first mortgage then that is taken off the total possible loan amount giving ($125,000-$60,000) which equals $65000 as the maximum amount you could borrow. The Lender would also want to look at what you earn and any other loans and monthly expenditures you have to check how big an equity loan you can afford to pay back.
125 Home Equity Interest Rates
Typically 125 home equity interest rates are higher compared to 30 year fixed conforming mortgages, but are always lower when compared with credit cards. The first step to finding out your 125 home equity loan interest rate is to contact one of your loan specialists, who will help you through the entire process.
One thing to remember with 125 home equity loans is that you are borrowing more than your home is worth. If for some reason you are not able to make the payments, you could lose your home. As with all our clients we try to understand your exact situation to make sure whatever loan you chose is the best fit for your current financial situation.
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