125% Home Equity Loans – Danger Of Borrowing More Than Home’s Equity
Because of home equity loans, homeowners are able to acquire extra money for a wide variety of purposes. Moreover, these loans make it possible to tap into the equity built without selling your home. There are many home equity options. Aside from getting a loan, homeowners may opt for an equity line of credit. Additionally, there is the 125% home equity loan option.
What is Equity?
The concept surrounding 125% or no-equity home loans is very simple. Ordinarily, homeowners would acquire equity loans that equal the amount of equity built in the home. Before going any further, it is important to understand how a home’s equity is determined.
Two factors contribute to a home’s equity, rising home values and amount owed to the mortgage company. If a homeowner’s property is valued at $200,000, and they owe the mortgage company $120,000, the home’s equity totals $80,000. In this scenario, the homeowner may obtain a home equity loan up to $80,000
How 125% Home Equity Loans Differ
If applying for a traditional home equity loan, homeowners may...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
