Guide to Finance


eg: UK or Brides UK or Classical Art or Buy Music or Spirituality

Business & Money

Technology

Women

Health

Education

Family

Travel

Cars

Entertainment

Featured Sites

125 Home Equity Loan

View:

A 125% home equity loan is a second mortgage loan program that allows you to borrow money even if you have no equity in your home. For those that don't already know, equity is the difference between the value of your home and the outstanding amount that you owe on the mortgage. For example, say your home is worth $100,000 and you owe $90,000 on the mortgage. You would have $10,000 of equity in your home. Now say your home is worth $100,000 and you still owe $100,000. In this scenario you have $0 home equity. This is the type of scenario in which a 125% home equity loan can really be beneficial as even though you have $0 equity a qualified home owner would still be eligible to borrow up to $25,000.

Homeowners who have "no equity" are not the only ones who can benefit from a 125% home equity loan. Consumers who have some equity in their home but do not have quite enough for their cash needs can benefit as well. Also, homeowners who already have a second mortgage but need more cash beyond their existing credit line can benefit by refinancing their existing second mortgage with a 125% equity loan.

125% home equity loans can be used to finance a college education, consolidate debt, home improvement or to just get cash out for any worthwhile purpose. Many homeowners, however, use the proceeds from their 125 loan to free up hundreds of dollars on their monthly cash flow by consolidating high interest rate credit cards and consumer loans. If you have a high monthly credit card and loan debt load, this can be a great way to get your finances under control.

While 125% equity loans can be a great source for needed cash, it is important to know that just as with a traditional home equity loan, a lien will be placed on your house by the lender to secure the loan. This means that when you sell your home you will have to pay the loan off. Therefore, before you take out a 125% home equity loan you will want to make sure that you plan on keeping your house long enough to accumulate at least enough equity to cover the outstanding loan amount. If not, you will have to come up with the difference from your pocket when you go to sell.

125% home equity loans are a niche loan product and will not be available by all lenders. You will need to shop around to find a home equity loan lender who offers this product. On the internet you can visit http://www.equityloansource.com for lender sources and more information on the 125 home equity loan program.

125 Home Equity Loan

The real estate market slow down may be causing you some big problems. If you are like most home owners, you probably intended to stay in your home for a few years (average is five to seven years), then move onto a home that better fits your needs. But with a market slow down, it may be difficult to sell your home and move up. Have you ever heard of the 125 home equity loan?

One option to consider is making improvements to your home or remodeling. But what do you do if you do not have the funds to remodel? Most remodeling projects require a lot more money than the average savings account. But you still have some options.

In this situation, lots of people turn to home equity loans. But even if you do not have a lot of equity in your home, you may be able to get enough money for your remodeling project. Instead of a traditional home equity loan, you could take a 125 home equity loan, sometimes referred to as a 125% no equity loan.

Basically, this loan is available to home owners to allow and allows them to borrow up to 25% more than the worth of the home. If this loan sounds too good to be true, you should be aware that there are some restrictions to these loans and they vary from state to state.

These loans are available to home owners with excellent credit. Borrowers can take a loan up to $125,000, of which, no more than $50,000 is cashed out. The home owner must use the money to improve the home. The loan can either be used as a first or second mortgage.

If the loan is a first mortgage, there are some obvious tax benefits, but you should always check with a tax consultant before taking any tax deductions. One of the downsides of this loan is that when you do sell your home, you have to repay the loan, which could exceed the purchase price of your home. But fortunately, the improvements you make to your property should allow your home to appreciate in value, especially after the real estate market rebounds in the future.

Just because the real estate market is not moving in the direction you would hoped, there is no reason why you cannot have a home you will be comfortable in. Sometimes you simply have to change your plans and get creative.

There are almost as many options for mortgages as there are homes out there. Do not be afraid to ask for more information about the 125 home equity loan, or get creative with mortgage solutions. With a little creativity, you can be in a home that is perfect for years to come.

Related Articles
Author
Most Popular

•	100 Home Equity Loan, by Christian Louis
•	125 Home Equity Loan, by Levetta Rivera
•	125 Percent Home Equity Loan, by Carrie Reeder
•	Apply For Home Equity Loan, by Khieng Chho
•	Bad Credit Home Equity Loan, by Steve Wheeler

About Author

Both Levetta Rivera & Jeffrey Nelson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Levetta Rivera has sinced written about articles on various topics from Home loans, Debts Loans and Credit Home Loan. About The Author: Levetta Rivera is a successful author and publisher of the following financial sites: http://www.badcreditloanshop.com and http://www.militaryvaloan.com. Levetta Rivera's top article generates over 5400 views. Bookmark Levetta Rivera to your Favourites.

Jeffrey Nelson has sinced written about articles on various topics from Debts Loans, Marketing and Real Estate. Click here to get a free copy of Jeff Nelson's, "7 Tips to Avoiding the Biggest Mortgage Mistakes," a 10-page report that describes the mistakes to avoi. Jeffrey Nelson's top article generates over 33100 views. Bookmark Jeffrey Nelson to your Favourites.

Acid Reflux Disease Surgery
Are you aware that a program that is all-natural and holistic can permanently cure your painful, distressful GERD symptoms? This program including herbal and homeopathic remedies, and modifications to...