125% Home Equity: No Equity Second Mortgage Loans for First Time Home Buyers

A 125% home equity loan (also known as no equitybenefits. When used wisely, 125 home equity loans can
loans, 125 home equity loans and 125 loans) is abe a relatively low-cost way to borrow money for big
second mortgage that requires no equity but the loanexpenses and debt consolidation.125% home equity
allows you to borrow up to 125% more than theloans are for those who plan to stay in their home until
current combined loan to value (CLTV) ratio of yourtheir property value increases significantly because the
home. The CLTV is the proportion of more than onehome cannot be sold unless the home equity loan is
loan secured by your home in relation to its value. Thispaid off in addition to the first mortgage. Also, because
is different than loan to value (LTV), which onlylenders face a higher risk of default due to there being
involves the proportion of a single loan in relation to itsno equity in the home, the interest rates are higher than
value.Wikipedia provides these examples to helpthose of a conventional home equity loan.125% home
people understand the difference between LTV andequity loans typically require that the borrower has
CLTV:Loan To Value:good credit. However, even if your credit is less than
Property valued at $200,000.00perfect, you may still be able to qualify for a 125%
1st mortgage = $180,000.00home equity loan. If not, you may want to consider
LTV = 90%Combined Loan To Value:mortgage refinancing or a standard second mortgage
Property valued at $200,000.00loan once your FICO credit scores improve.Maria Ny, a
1st mortgage = $180,000.00free-lance writer from California, is highly respected for
2nd mortgage = $45,000.00her published articles that covered a broad range of
$225,000 Total mortgage balancesubjects ranging from Home Equity, Debt Consolidation,
CLTV = 112.5%125% loans are generally fixed interestBankruptcy Reform, Credit Repair to Real estate
rate installment loans, and they are particularly popularFinancing. Check out her helpful articles online at
among first time home buyers who don't yet haveSecond Mortgage & Home Equity Loans
equity in their homes for debt consolidation, makingNationwide.You can learn more about debt
home improvements, buying furniture, landscaping,consolidation and home improvement financing for first
consolidation of auto loans, personal loans and othertime homebuyers and get specific loan program
high-interest loans, paying medical expenses andparameters. Get a free loan quote for a 125% Second
college tuition. 125 loans may also be used forMortgage that requires no equity. We recommend that
mortgage refinancing of a current secondyou get more details about the guidelines for Fixed
mortgage.Even with rising interest rates, a 125% loanRate No Equity Home Loans because it could help
offers borrowers lower rates than credit cards andlower your monthly payments by lowering the
personal loans, and it may also provide substantial taxadjustable interest rates on credit cards.