125 Home Loan
How does 125 home loan work?
In fact, this loan is a second mortgage, people prefers to apply the loan when they refinance their home.
A 125 percent home loan allow you to borrow 25% extra than your home value. For an example, if your home value is 100 thousand, you may borrow up to 125 thousand. With the extra 25% money, you may use it to renovate or decorate your home, purchase your home needs such furniture, a personal computer & etc. Some people even use the money in an investment.
The home loan is offer by various lender online or in banks, they have their own terms & conditions. But all of them required good credit score and income from a borrower. It's a credit score driven program. The credit score determines the maximum loan amount you can afford and the maximum cash in hand you may receive. In addition, some lenders may require the staying length in your home, that's mean they want to confirm your are staying in the home at least 3 months in a year.
Although this type of loan sound like very attractive, just a word of caution, apply it if you really in a dire of financial or need the extra money. Because the loan interest definitely is higher than other types of loan. Failing of payback the money may resulted losing home, get sue or file to bankruptcy.
Nevertheless, if you have a disciplined payback plan, this loan may suit to you. Just repay your loan on time, do not defer you are in safe zone and probably will increase your credit score.
For others loan information, please check out the
100% Home Equity Loan instead of 125 Home Loan
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