Thursday, January 15, 2009

125% Home Equity: No Equity Second mortgages for First Time Home Buyers

125% Home Equity: No Equity Second mortgages for First Time Home Buyers

 

 A 125% equity loan at home (also known as non loans, home loans 125 and 125 credits), is half that of non-mortgage assets, but the loan you can borrow up to 125% more than l ' current combined value of the loan (CLTV) ratio of your home. The CLTV is the share of more than a loan that your property in relation to its value. This is different from thatwaarde for the loan (LTV), which deals only Dedel of loans in proportion to their value.

 

 Wikipedia offers these examples to help people understand the difference between LTV and CLTV:

 

 Loan to Value:

 

 Property valued at $ 200,000.00

 

 1st mortgage = $ 180,000.00

 

 LTV = 90%

 

 Combined loan to value:

 

 Property valued at $ 200,000.00

 

 1st mortgage = $ 180,000.00

 

 2nd mortgage = $ 45,000.00

 

 $ 225,000 Total mortgage evenwicht

 

 CLTV = 112.5%

 

 125% loans are generally loans with a fixed rate of delivery, and particularly popular Armet and first home buyers who do not have their homes in the capital for debt consolidation, home improvements, buy furniture, landscaping, consolidation of auto loans, personal loans and other high-interest loans, payment of medical expenses and college classes. 125 loans may also be used for refinancingto a second mortgage current mortgage.

 

 Even with the increase in interest rates, a 125% loan offers borrowers lower rates than credit cards and personal loans, and may also have significant tax advantages. When used wisely, 125 home equity loans can be a relatively cheap way to borrow money for large expenditures and debt consolidation.

 

 125% home loans for those who wish to stay in theirhouse of their properties significantly toeneemt value, because the house can not be sold unless the home equity loan is paid in addition to the first mortgage. Even as lenders face a higher risk of default, because there is no equity in the home, derente is higher than that of a traditional home equity loan.

 

 125% home loans generally that the borrower has good credit. But even if the claim is less than perfect,you may still be able to beneficiarea receive a 125% equity loan at home. Otherwise, you may want to consider refinancing mortgage or vehicle mortgage FICO credit once the assessment improv